Agenda item

To submit the report of the Chief Executive

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.