Pay and Reward Meeting

Today’s meeting

• Background to the proposed changes to the Council’s pay structure

• Overview of proposed changes• What happens next

Background• 50% reduction in Government funding to SCC

by end of 2015/2016• Savings have had to be found across the

organisation• Increment freeze for the past three years• Continuing with the increment freeze is not

sustainable• Increments unaffordable - £4.7 million next

year

Pay principles– Protection for the low paid - Living Wage– Maintaining national pay bargaining– Protecting as many jobs as is reasonable for as

long as possible– Affordability– Pay that allows the Council to retain, motivate and

attract staff– Implementing this approach across the board -

Soulbury, JNC, LGS, Craft

Out of scope

• Former Sheffield Homes• Former Public Health• Other staff TUPE’d into the Council• Teachers • School based staff

Pay proposal

• Move to fixed (‘established’) point for each grade

• Fixed points would be set as follows:• Grades 2 & 3 - one point below the highest point in

the current grade• Grades 4 & 5 - at the upper mid point of the current

grade • Grades 6 and above - at the lower mid point for the

current grade

Pay proposal

•Movement to the new rates would be in three equal instalments, from April 2014

• Entry level rate for new starters– Removes potential of existing staff being paid less

than new starters– Interim to April 2016

Pay proposal

•National pay awards will continue to apply•Grade structure and role profiles would be maintained

• 12 month protection for lower paid

Pay proposal

• Under the proposals:– 69% of employees will move up the pay scale– 23% of employees will receive less pay– 8% of employees will stay the same

•We estimate these changes would cost £1.7m in 2014/15, and less than half the cost of increments over a three year period

Proposed GradesSCC Grade Proposed Salary

Grade 1 

£12,915

Grade 2  £14,880

Grade 3  £16,604

Grade 4  £18,638

Grade 5  £21,734

Grade 6  £24,892

Grade 7  £28,992

Grade 8  £32,072

Grade 9  £36,676

SCC Grade Proposed Salary

Grade 10  £41,148

Grade 11  £46,442

DG 7  £55,577

DG 6 

£65,375

DG 5 

£75,086

DG 4 

£80,590

DG 3 

£85,737

DG 2 

£94,736

EX DIR 

£123,066

Impact on Basic pay

SCC GradeMax % Impact On Grade If There Is a

Decrease

Max % Impact on Grade If There is

an Increase

Grade 1 

no impact  

Grade 2  - 2.03% +11.70%

Grade 3  - 2.03% +9.32%

Grade 4  - 5.95% +9.65%

Grade 5  - 6.27% +9.67%

Grade 6  - 8.90% +7.35%

Grade 7  - 7.18% +5.85%

Grade 8  - 8.09% +5.81%

Grade 9  - 6.80% +5.11%

SCC GradeMax % Impact On Grade If There Is a

Decrease

Max % Impact on Grade If There is

an Increase

Grade 10  - 6.04% +4.57%

Grade 11  - 5.39% +6.05%

DG 7  - 4.55% +2.43%

DG 6 

- 4.54% +2.3%

DG 5 

- 2.39% +2.51%

DG 4 

- 1.29% +2.33%

DG 3 

- 4.56% +2.45%

DG 2 

- 4.82% +2.50%

EX DIR 

-13.04% +5.27%

Numbers impacted in each grade 

Number of Employee’s Impacted by Grade If there Is:

SCC Grade a Decrease an Increase No change

Grade 1  7 29  

Grade 2  10 221 29

Grade 3  235 371 75

Grade 4  283 857 22

Grade 5  174 624 235

Grade 6  215 564 34

Grade 7  105 447 78

Grade 8  134 551 29

Grade 9  143 334 32

 Number of Employee’s Impacted by Grade If there

Is:

SCC Grade a Decrease an Increase No change

Grade 10  82 106 14

Grade 11  43 97 6

DG 7  24 14 3

DG 6  6 5  

DG 5  2 3 2

DG 4  1 5 5

DG 3  2    

DG 2  2    

EX DIR  2 1 1

Other issues

• The principles• Protection for staff in MER processes• Living Wage• Enhancements - no proposal• Pension

Wider aspects of pay and reward• Career and learning and development • Enhanced salary sacrifice schemes

– Green travel– Training expenses– Annual leave/career breaks, etc

• Performance management - career record and create a career path

• Work/Life balance • Physical environment• Pension employer contributions

Trade Unions

• Trade Unions are planning to ballot members on the proposal - aim to complete by end December

• If the ballot result is a Yes – collective agreement and the proposal is implemented without any additional process

• If the ballot result is a No - they may ballot for industrial action

Next steps/more info

• New pay structure would be implemented from 1 April 2014

• You can find more information by:• Visiting the pay and reward section of the

Intranet – http://intranet/payandreward• Reading the FAQs on the Intranet• Raising a question through the

payandrewardenquiries mailbox