Harmonisation Proposals Savings Breakdown

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Cheshire East Council Cheshire East Council Harmonisation of Harmonisation of Terms & Conditions Terms & Conditions OVERALL PROPOSAL OVERALL PROPOSAL A cut of over £ 8.7 million A cut of over £ 8.7 million in Cheshire East employees in Cheshire East employees pay. pay.

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Cheshire East Council Harmonisation of Terms & Conditions OVERALL PROPOSAL A cut of over £ 8.7 million in Cheshire East employees pay. Harmonisation Proposals Savings Breakdown. Freeze Incremental Progression Year One - £ 1.3 million - proposed saving - PowerPoint PPT Presentation

Transcript of Harmonisation Proposals Savings Breakdown

Page 1: Harmonisation Proposals  Savings Breakdown

Cheshire East Council Cheshire East Council

Harmonisation of Harmonisation of Terms & ConditionsTerms & Conditions

OVERALL PROPOSAL OVERALL PROPOSAL A cut of over £ 8.7 million A cut of over £ 8.7 million

in Cheshire East employees pay.in Cheshire East employees pay.

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Harmonisation Proposals Harmonisation Proposals Savings BreakdownSavings Breakdown

Freeze Incremental ProgressionFreeze Incremental Progression

Year One - £ 1.3 million - proposed savingYear One - £ 1.3 million - proposed saving Year Two - £ 2.4 million - proposed savingYear Two - £ 2.4 million - proposed saving

Introduce Introduce Flat Rate 40p Car AllowancesFlat Rate 40p Car Allowances - proposed saving - £ 1.78 million - proposed saving - £ 1.78 million

Basic Pay Basic Pay Grading Structure ChangesGrading Structure Changes - proposed saving - £ 246,270 - proposed saving - £ 246,270

All Weekend Working at Flat RateAll Weekend Working at Flat Rate - proposed saving - £ 1.69 million - proposed saving - £ 1.69 million

Basic Flat Rate OvertimeBasic Flat Rate Overtime - proposed saving - £ 687,280 - proposed saving - £ 687,280

Removal of all Bonus PaymentsRemoval of all Bonus Payments - proposed saving - £ 503,006 - proposed saving - £ 503,006

All Night & Evening Working at Time + 10%All Night & Evening Working at Time + 10% - proposed saving - £ 167,015 - proposed saving - £ 167,015

Bank Holiday Working at FLAT RateBank Holiday Working at FLAT Rate - proposed saving - £ 85,157 - proposed saving - £ 85,157

Removal of all Shift AllowancesRemoval of all Shift Allowances - proposed saving - £ 82,292 - proposed saving - £ 82,292

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Cheshire East Council Cheshire East Council Harmonisation of Terms & ConditionsHarmonisation of Terms & Conditions

Driving down both National and Local Terms and ConditionsDriving down both National and Local Terms and Conditions

Resolve historical issues in Congleton and Macclesfield as a result of Resolve historical issues in Congleton and Macclesfield as a result of separate and complex Single Status and Job Evaluation outcomesseparate and complex Single Status and Job Evaluation outcomes

Single set of Harmonised Terms and Conditions for Single set of Harmonised Terms and Conditions for ALL EMPLOYEESALL EMPLOYEES to take effect September / October 2011 to take effect September / October 2011

Protecting jobs and basic pay wherever possible.Protecting jobs and basic pay wherever possible.

Build on good practice to suit the needs of Cheshire East CouncilBuild on good practice to suit the needs of Cheshire East Council

New pay and Grading Structure which is affordableNew pay and Grading Structure which is affordable

Equal pay requirements and liabilities are managedEqual pay requirements and liabilities are managed

New Contracts of Employment for All EmployeesNew Contracts of Employment for All Employees

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Consultation TimetableConsultation Timetable Consultation Meetings have taken place on a confidential basis between the Consultation Meetings have taken place on a confidential basis between the

Cheshire East Council and the Joint Trade Unions on the proposals weekly Cheshire East Council and the Joint Trade Unions on the proposals weekly since Wednesday 8since Wednesday 8thth December 2010 December 2010

Cheshire East Council wider consultation with employees will take place Cheshire East Council wider consultation with employees will take place between 24between 24thth February 2011 and 27 February 2011 and 27thth May 2011 (three months) May 2011 (three months)

If at the end of the lengthy Consultation Period, agreement is not reached If at the end of the lengthy Consultation Period, agreement is not reached between Cheshire East Council and the Joint Trade Unions on the between Cheshire East Council and the Joint Trade Unions on the proposals. proposals.

A number of options existA number of options exist

Unions would have to ballot all Union Members on the proposals and Unions would have to ballot all Union Members on the proposals and consider Industrial Action, if agreement is still not reachedconsider Industrial Action, if agreement is still not reached

Cheshire East Council could serve notice and impose the proposalsCheshire East Council could serve notice and impose the proposals

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Basic PayBasic Pay Assimilation of all NJC and JNC posts onto Cheshire East pay structure Assimilation of all NJC and JNC posts onto Cheshire East pay structure

using Cheshire East Job Evaluation Scheme.using Cheshire East Job Evaluation Scheme.

Maintain Cheshire East Council grading structure with some minor changesMaintain Cheshire East Council grading structure with some minor changes

Proposed Savings = £246,270Proposed Savings = £246,270

Freeze incremental progression for 2 years with effect from 1Freeze incremental progression for 2 years with effect from 1stst September 2011. September 2011.

Proposed Saving - Year One - £ 1.3 millionProposed Saving - Year One - £ 1.3 million Proposed Saving - Year Two - £ 2.4 millionProposed Saving - Year Two - £ 2.4 million

Introduction of competency based pay and reward structure in 2013Introduction of competency based pay and reward structure in 2013 (performance related pay)(performance related pay)

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Salary ProtectionSalary Protection

Protection of Base Pay on a sliding scale for one yearProtection of Base Pay on a sliding scale for one year

3 months at Full Pay3 months at Full Pay 3 months 75%3 months 75% 3 months 50%3 months 50% 3 months 25%3 months 25%

Employees already in receipt of pay protection due to single status / Employees already in receipt of pay protection due to single status / Local Government Review restructures whereby existing pay protection Local Government Review restructures whereby existing pay protection periods will be honoured. However new protection arrangements will periods will be honoured. However new protection arrangements will apply in respect of the outcome of the harmonisation review and any apply in respect of the outcome of the harmonisation review and any restructure / reduction in base pay going forwardrestructure / reduction in base pay going forward

Existing legacy policies will cease upon implementationExisting legacy policies will cease upon implementation

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Overtime PaymentsOvertime Payments

All Employees receive flat rate based on 37 hour working week All Employees receive flat rate based on 37 hour working week

Former District Employees receive time + 1/2 (half) and double Former District Employees receive time + 1/2 (half) and double time payments, time payments, this effects Cleansing, Streetscape, Waste this effects Cleansing, Streetscape, Waste Management, Leisure & Green Space and many othersManagement, Leisure & Green Space and many others

Former County Council Employees being paid at time + 1/4 Former County Council Employees being paid at time + 1/4 (quarter), + 1/5 and + 1/8 (linked to historic removal and (quarter), + 1/5 and + 1/8 (linked to historic removal and consolidation of bonuses) consolidation of bonuses) this effects School Cooks, Teaching this effects School Cooks, Teaching Assistants, General Assistants, Community Support WorkersAssistants, General Assistants, Community Support Workers

Proposed saving of £687,280Proposed saving of £687,280

Cheshire East Council Proposal is to pay :Cheshire East Council Proposal is to pay :

BASIC FLAT RATE for ALL OVERTIMEBASIC FLAT RATE for ALL OVERTIME

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Bonus PaymentsBonus Payments

Former District Employees in Congleton and Macclesfield Former District Employees in Congleton and Macclesfield receive a fixed lump sum bonus, including task and finish and receive a fixed lump sum bonus, including task and finish and additional duty bonuses foradditional duty bonuses for Streetscape Operatives, Refuse Streetscape Operatives, Refuse Loaders, Leisure and Green Space, ChargehandsLoaders, Leisure and Green Space, Chargehands

Proposed Savings of £503,006Proposed Savings of £503,006

Cheshire East Council Proposal is toCheshire East Council Proposal is to

REMOVAL of ALLREMOVAL of ALL BONUSBONUS paymentspayments

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Weekend WorkingWeekend Working

Weekend Working for Cheshire County Council employees Weekend Working for Cheshire County Council employees (86%) receive time + 1/2 (half)(86%) receive time + 1/2 (half)

Weekend Working for District Council employees (14%) Weekend Working for District Council employees (14%) receive double time payments for Sunday workingreceive double time payments for Sunday working

Proposed saving of £ 1,693,921Proposed saving of £ 1,693,921

Cheshire East Council Proposal is to payCheshire East Council Proposal is to pay

ALL WeekendALL Weekend workingworking at at FLAT RATEFLAT RATE (Saturday & Sunday working incorporated into contract of employment)(Saturday & Sunday working incorporated into contract of employment)

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Night and Evening WorkNight and Evening Work

Night and Evening Work is more complicated as employees are Night and Evening Work is more complicated as employees are paid at Time + 10%, 20%, 30%, 33% of basic pay, dependant on the paid at Time + 10%, 20%, 30%, 33% of basic pay, dependant on the service being provided. service being provided. This proposal effects Resources Managers, This proposal effects Resources Managers, Residential Care & Community Support Workers and many other night Residential Care & Community Support Workers and many other night workersworkers

Proposed saving of £ 167,015Proposed saving of £ 167,015

Cheshire East Council Proposal is to payCheshire East Council Proposal is to pay

ALLALL Night & Evening Working Night & Evening Working atat TIME + 10%TIME + 10%

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Bank Holiday PayBank Holiday Pay

County Council employees (86%) receive County Council employees (86%) receive Time + 1/2 (half) Time + 1/2 (half) this includes this includes Residential and Domiciliary Care, Community Support WorkersResidential and Domiciliary Care, Community Support Workers

District Council employees (14%) receive District Council employees (14%) receive (2x) Double Time(2x) Double Time payments payments for Bank Holiday work and receive for Bank Holiday work and receive (3x) Triple Time(3x) Triple Time payment for payment for Christmas & Boxing Day Christmas & Boxing Day this includes front line services and this includes front line services and emergency provision over the Bank Holiday period.emergency provision over the Bank Holiday period.

Proposed Saving of £ 85,157Proposed Saving of £ 85,157

Cheshire East Council Proposal is to pay:Cheshire East Council Proposal is to pay:

Bank Holiday working to be paid at plain time, with no time Bank Holiday working to be paid at plain time, with no time off in lieu for working the bank holiday off in lieu for working the bank holiday

Christmas Day and Boxing Day Bank Holidays only for Christmas Day and Boxing Day Bank Holidays only for working above contracted hours will receive Double Time working above contracted hours will receive Double Time with no additional time off in lieuwith no additional time off in lieu

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Shift AllowancesShift Allowances

Shift Allowance are currently paid at Time + 2.5%, 5%, 7.5%, 10%, 12%, Shift Allowance are currently paid at Time + 2.5%, 5%, 7.5%, 10%, 12%, 12.5%, 14% and open pay values, dependant of the service12.5%, 14% and open pay values, dependant of the service and and includes employees such as Community Support Workers, Leisure includes employees such as Community Support Workers, Leisure Centre Assistants, Depot Yardman / Chargehands, Civic & Halls Centre Assistants, Depot Yardman / Chargehands, Civic & Halls Officers, Leisure Officers, CCTV & Community Wardens, Driver / Officers, Leisure Officers, CCTV & Community Wardens, Driver / Attendants, ICT OperativesAttendants, ICT Operatives

Proposed Savings of £82,292Proposed Savings of £82,292

Cheshire East Council Proposal is toCheshire East Council Proposal is to Removal of ALLRemoval of ALL Shift Allowances paymentsShift Allowances payments Eliminate ALLEliminate ALL Split shift paymentsSplit shift payments

Requirement on Management to review all working practices and shift Requirement on Management to review all working practices and shift management to ensure consistent approach to rota patternsmanagement to ensure consistent approach to rota patterns

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Car Mileage AllowancesCar Mileage Allowances

Removal of the NJC Car Mileage Agreement for all Cheshire Removal of the NJC Car Mileage Agreement for all Cheshire East employeesEast employees

Introduction of flat mileage rate of 40p per mile up to 10,000 Introduction of flat mileage rate of 40p per mile up to 10,000 miles and 25p per mile above 10,000 miles.miles and 25p per mile above 10,000 miles.

This is a clear breach of national terms and conditions contained with This is a clear breach of national terms and conditions contained with thethe National Joint Council for Local Government National Agreement National Joint Council for Local Government National Agreement on Pay and Conditions of Service “Green Book”on Pay and Conditions of Service “Green Book”

Details of the current mileage agreement can be foundDetails of the current mileage agreement can be found http://www.lge.gov.uk/lge/dio/6617302http://www.lge.gov.uk/lge/dio/6617302

Proposed Savings of £ 1,780,901Proposed Savings of £ 1,780,901

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Car LeasingCar Leasing Removal of all existing car lease schemes.Removal of all existing car lease schemes.

Introduction of salary sacrifice green car lease scheme.Introduction of salary sacrifice green car lease scheme.

All employees will be eligible to join the new schemeAll employees will be eligible to join the new scheme

Introduction of bicycle mileage scheme based on 0.25p per Introduction of bicycle mileage scheme based on 0.25p per milemile

Car Parking – consider charging for staff parking at main Car Parking – consider charging for staff parking at main Council buildingsCouncil buildings

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General AllowancesGeneral Allowances Standby/Call OutStandby/Call Out

Retain payment at Retain payment at £26.50£26.50.. Review criteria for paymentReview criteria for payment Increased Cost = £8,580Increased Cost = £8,580

Sleep in Sleep in Retain payment at Retain payment at £32.94£32.94. . Review criteria for paymentReview criteria for payment No SavingsNo Savings

First Aid Allowance.First Aid Allowance. Retain payment and harmonise to Retain payment and harmonise to £120 per annum£120 per annum Review criteria for payment Review criteria for payment Savings = £736Savings = £736

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General AllowancesGeneral Allowances

Retain Payment and review working practices:Retain Payment and review working practices:

Emergency Duty TeamEmergency Duty Team Assessment related tasksAssessment related tasks Pace/EscortPace/Escort Duty Manager at Tatton ParkDuty Manager at Tatton Park

The following allowances to be removedThe following allowances to be removed

Busy Bar;Busy Bar; Deliveries;Deliveries; Telephone & Broadband (excluding designated home workers);Telephone & Broadband (excluding designated home workers); Turnaround;Turnaround; Visits;Visits; Laundry;Laundry;

Any Allowances where no payment has been made in the last year.Any Allowances where no payment has been made in the last year.

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Pay Related PoliciesPay Related Policies

Working Week Working Week Retain full time working week at 37 hours per week. Retain full time working week at 37 hours per week.

Annual leaveAnnual leave 25 days rising to 30 days after 5 years25 days rising to 30 days after 5 years 8 bank holidays / statutory days8 bank holidays / statutory days Purchase of Annual LeavePurchase of Annual Leave

Flexi Time PolicyFlexi Time Policy Reduction of number of days flexi that can be taken per four week period Reduction of number of days flexi that can be taken per four week period

from two to one.from two to one. Removal of access to flexi leave for employees at Grade 13 plus (retaining Removal of access to flexi leave for employees at Grade 13 plus (retaining

ability for flexible start/finish times).ability for flexible start/finish times).

Payment of Professional Fees. Payment of Professional Fees. No reimbursement where the professional membership is not an essential No reimbursement where the professional membership is not an essential

requirement for the post or where the fee is less than £250 requirement for the post or where the fee is less than £250 Where it is a professional requirement and the fee is above £250, the Where it is a professional requirement and the fee is above £250, the

Council will pay that part over and above £250Council will pay that part over and above £250 Existing legacy policies will cease upon implementationExisting legacy policies will cease upon implementation

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New Proposals not previously discussed New Proposals not previously discussed with the Joint Trade Unionswith the Joint Trade Unions

Sickness. Sickness. Removal of entitlement to receive enhanced payments (eg sleep in Removal of entitlement to receive enhanced payments (eg sleep in

allowance, night rate) whilst off sick, allowance, night rate) whilst off sick, Existing legacy policies will cease upon implementationExisting legacy policies will cease upon implementation

Long Service Awards. Long Service Awards. Removal of all long service awards and incrementsRemoval of all long service awards and increments Existing legacy policies will cease upon implementationExisting legacy policies will cease upon implementation

Expenses. Expenses. Reasonable reimbursement of expenses as per the current Cheshire East Reasonable reimbursement of expenses as per the current Cheshire East

Council policyCouncil policy Existing legacy policies will cease upon implementationExisting legacy policies will cease upon implementation

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Closing CommentsClosing Comments As at 31As at 31stst December 2010, Cheshire East Council has a projected overspend for December 2010, Cheshire East Council has a projected overspend for

2010/2011 of £ 7.7 million.2010/2011 of £ 7.7 million.

As a result of recent Government Announcement on Public Spend, Cheshire East As a result of recent Government Announcement on Public Spend, Cheshire East Council have adopted a net saving target of £ 30 million for 2011/2012. Council have adopted a net saving target of £ 30 million for 2011/2012.

Cheshire East Council is currently looking at every form of expenditure including Cheshire East Council is currently looking at every form of expenditure including Employees Terms and Conditions to achieve these Budget SavingsEmployees Terms and Conditions to achieve these Budget Savings

The consultation on Harmonisation is being presented to all recognised Trade Unions The consultation on Harmonisation is being presented to all recognised Trade Unions by Cheshire East Council, however these proposal can be impose by the Employer, if by Cheshire East Council, however these proposal can be impose by the Employer, if agreement is not reachedagreement is not reached

Before agreeing any changes in Terms & Conditions, Before agreeing any changes in Terms & Conditions, Union’sUnion’s would ballot it’s would ballot it’s Membership on the detailed package of proposals and any actions would be based Membership on the detailed package of proposals and any actions would be based on the outcome of the ballot result on the outcome of the ballot result

It is therefore very important that all Membership Records are correct and up to date.It is therefore very important that all Membership Records are correct and up to date.