To submit the report of the Chief Executive
Minutes:
The report was presented, noting that there was a statutory duty on the
Council to prepare a pay policy statement, and as had been requested by the
Council, the Chief Officers Appointment Committee was expected to conduct a
review of the policy's sustainability and to submit any recommendations
following the review of the pay policy to the Full Council annually. It was reported that there were no amendments
to the policy this year, however, in accordance with the Council’s Constitution, consideration must be given to the policy's
future sustainability.
The Chief Executive highlighted that we had not reviewed the salaries of
the Council's Chief Officers for some time, and that there was a risk that we
might unknowingly fall behind other Councils. Consequently, he highlighted that
he intended to conduct a review of the salaries by comparing neighbouring
authorities' salaries with corresponding salaries in other public sector
organisations. He added that the review would highlight the current situation
as well as potential risks for the Council. He would report
back to this Committee during the year.
In response to a
question regarding the current procedure, he noted that Chief Officers'
salaries were set according to the advice and evaluation scheme by Hay Group,
who advise authorities across the UK. He noted that the disadvantage of this
approach was that the comparison might be too broad, and that we needed to
focus on local considerations and comparisons.
Although there were no amendments to the policy,
attention was drawn to some matters.
-
That the Hutton Review of Fair Pay in the Public
Sector recommended a ratio of no more than 1:20 between the highest and lowest
salary (full-time). This ratio is
currently 1:6.2 in Gwynedd Council and the ratio for Chief Officers' median
salary and the lowest salary is 1:4.4.
The Committee was
grateful for the presentation.
In response to a
comment that there was a need to also review the lowest salaries to ensure
'balance', the Members were reminded that the two lowest points of the former
national pay structure had been abolished and that from 1 April 2019, Gwynedd
Council's minimum wage had been £9.18 per hour.
In November 2019, the Living Wage Foundation had announced that the
Living Wage was increasing to £9.30/hour which would
mean that Gwynedd Council staff, with a 2% increase from 1 April 2020, would
receive £9.36/hour. It was highlighted that a formal proposal
of 2% had already been made by the employer, but the Unions had
submitted a request for 10%. It was noted that
national discussions were being held in order to seek agreement.
In response to a
question regarding a review of all staff salaries, it was reported that the
local pay review had been conducted in 2008 and that the work during that
review had laid down firm foundations for ensuring equal pay within the
Council.
In response to a
question regarding a review of all staff salaries, it was
reported that the last review took place in 2008.
In response to a
question regarding a statement in the report that the Full Council would
approve any change to a post's salary package (posts with a salary of £100,000
and over), it was noted that the figure was inflexible as it followed national,
statutory guidance.
In response to a question
on receiving the opinion and recommendation of the Independent Remuneration
Panel for Wales when Councils were considering revising chief officers' pay
scales, it was noted that the Council had to present
suggestions to the Panel after the review had been completed.
It was proposed
and seconded to accept the report and to request that the Chief Executive
completes the review of Chief Officers' salaries as soon as possible and to report back to this Committee.
RESOLVED TO ACCEPT THE REPORT IN ACCORDANCE
WITH THE RECOMMENDATION.
·
That the Appointment
Committee proposes the (draft) Pay Policy Statement to the Council on 5 March 2020, to be adopted for 2020/21.
Supporting documents: