Contracts and Terms and Conditions for Senior Posts which form part of the Council Re-organisation

Transcription

1 Meeting Date 28 June 2012 Subject Report of Summary General Functions Committee Contracts and Terms and Conditions for Senior Posts which form part of the Council Re-organisation Sarah Murphy-Brookman Assistant Director Human Resources This report provides information to the Committee about proposed new contracts and Terms and Conditions of Employment for Senior Posts which from part of the Council re-organisation Officer Contributors Status (public or exempt) Wards Affected - Key Decision Reason for urgency / exemption from call-in Function of Enclosures Contact for Further Information: Sarah Murphy-Brookman, Assistant Director Human Resources Public Not applicable Not applicable Council None Sarah Murphy-Brookman

2 1 RECOMMENDATIONS 1.1 To agree the proposed new employment contracts and Terms and Conditions of Employment for those Senior Posts which are part of the Council reorganisation. 1.2 That the committee agrees that formal consultation can commence with the trade unions 2. RELEVANT PREVIOUS DECISIONS 2.1 General Functions Committee met on the 23 April 2012 to discuss the Reorganisation of the Senior Officer and Council Structures and agreed the recommendations as set out in that report. 3. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 3.1 The Corporate Plan sets the vision of Better Services with Less Money and outlines a more efficient organisation that makes best use of people and resources. 3.2 At the meeting of General Functions Committee on 23 April 2012 the Head of Paid Service set out his ambition for the Council to deliver this programme by moving to: Become a customer centric organisation by placing the customer at the centre of the council s business and for the Council s structures to be formed around this principle, and in addition to facilitate the use of customer insight more effectively. Make further financial savings - the ongoing reductions in public expenditure necessitates further reductions in the management overhead of the organisation. Shift the skills requirements for senior staff - there needs to be greater emphasis on the effective client and commercial management of providers. Create a more flexible organisation which is able to shift capacity and better manage its resources so that it can respond to shifting priorities and funding uncertainties 3.3 The next step has been to start a process to resize and reorganise the Senior Posts within the council. 3.4 In order to support the delivery of the re-organisation of the Senior Posts the council now needs to turn its attention to the creation of a modern fit for purpose employment contract and Terms and Conditions which enable the council to create the flexible organisation which is able to shift capacity and better manage its resources so that it can respond to shifting priorities and funding uncertainties set out at para 3.5 above. 3.5 The Remuneration Committee will also support this work by developing a Reward Strategy for the Senior Posts which delivers affordability and cost control.

3 4. RISK MANAGEMENT ISSUES 4.1 The proposed new employment terms reflect a balance between the type of relationship that Local Authorities have previously had with their senior employees versus modernising terms so that they are reflective of the general market within which these senior posts are placed. The terms must also ensure that the Council is able to attract and retain talent and that talent turnover is at a sustainable level. 4.2 The proposal to come out of national pay negotiations and collective bargaining is an important financial control to ensure that the Council can deliver against its Medium term Financial Strategy. 4.3 The new holiday and sick pay terms remain competitive against private sector employers, albeit that they are reduction from current provisions. 5. EQUALITIES AND DIVERSITY ISSUES 5.1 The functions undertaken by the General Functions Committee support the Council in its compliance of the Public Sector Equality Duty as set out in Equality Act Specifically the Committee will need to demonstrate that its functions and decisions have taken due regard of the need to: Eliminate discrimination, harassment, victimisation and any other conduct prohibited under the Act; Support equality of opportunity between those with a protected characteristic and those without; Promote good relations between those with a protected characteristic and those without 5.2 The proposed Employment Contract and Terms and Conditions of Employment will be Equality Impact Assessed and the consultation process will be used to gather insight and data about the effect of the proposed changes upon the protected characteristics listed under the Equality Act. 6. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) 6.1 The new employment contracts and terms and conditions propose a number of changes that provide the organisation with improved productivity and efficiencies. These are detailed in section All Staffing matters are covered in detail in section Any financial implications fall within the Medium Term Financial Strategy as set out in the General Functions Committee Report on the 23 April 2012

4 7. LEGAL 7.1 The variation of contractual terms may not be undertaken unilaterally by any employer even in circumstances where there is a fundamental shift in the strategic direction of an organisation. Variations to contractual terms must be conducted only after there has been discussion with affected individuals whether by means of direct consultation or consultation with recognised trade unions. 7.2 Following such consultation is it preferable that acceptance of new terms and conditions be formally recorded in the form or a written agreement. 7.3 Notwithstanding that the subject of the proposed variation is senior staff; consideration must still be given to the extent to which reference must be given to nationally determined terms and conditions of employment. 8. CONSTITUTIONAL POWERS (Relevant section from the Constitution, Key/Non-Key Decision) 8.1 Constitution Part 3 - Responsibility for Functions - Section 2 Responsibility for Council Functions - General Functions Committee - Staff matters and conditions of service. Restructures which have major implications including changes to contracts of employment and proposals involving major changes in working practices and location of employees must be submitted to General Functions Committee for approval. 9. BACKGROUND INFORMATION 9.1 Staffing Matters As the Council seeks to deliver the ambition set out at paragraph 3.2 it is proposed that the Council defines a new and modern relationship with its Senior Officers through personal contracts. The proposed changes are: 1. There will be no automatic link to national pay negotiations, nor will collective pay bargaining apply. The Council whilst it embeds its new structure may choose to follow National pay negotiations however this will be a matter of discretion of the Head of Paid Service as advised by the Remuneration Committee. 2. There will be no link to Green Book or JNC terms for Chief Officers except to the extent that these are a statutory requirement 3. The relevant policies as listed in the Employee Handbook will apply to these roles, except as specifically varied in the Contract 4. The annual leave allowance will be a maximum of 30 days plus customary and bank holidays 5. Sick pay will be limited to a maximum of six months at full pay and 3 months at half pay.

5 Any previous protection for pay or annual leave will not be maintained The contracts will be permanent and pensionable; accrued continuous service will continue to be maintained; individual Trade Union membership will continue to be recognised. 9.2 Consultation Process Full consultation will take place with Trade Unions and this consultation will be managed in accordance with the Council s Trade Union and Employee Relations Framework. 10. LIST OF BACKGROUND PAPERS 10.1 Re-organisation of the Senior Officer and Council Structures GFC 23 April Senior Posts Reward Structure to be considered at the Remuneration Committee 28 June 2012 Cleared by Finance (Officer s initials) Cleared by Legal (Officer s initials) MC/JH PL