The Staff Side have asked for discussion on the pay claim submitted by the unions for a £1 an hour increase and the Council’s response.
Management will have held two meetings with the Staff Side week beginning 2nd December 2013 and anupdate will be provided on the outcome of both meetings.
Minutes:
The Staff Side indicated that they were seeking a £1.00 per hour pay rise for Council staff. The Staff Side stated that there had been a three year pay freeze and a two year pay limit, and so in real terms living standards had fallen by 18%. The Staff Side stated that 400,000 jobs had been lost in the last three years, and resultantly the pay bill for Bromley had decreased by ten million pounds. The Staff Side believed that Bromley Council had one hundred and five million in reserves, and that this money could be used to fund a pay rise. The Staff Side noted that thirty seven million pounds had been set aside by the Council to invest in the Borough. A case was developed along the premise that 60% of the workforce lived in the Borough, and that it was estimated that for every £1.00 paid in wages, 50% of this money would be spent within the Borough, thus stimulating economic development locally.
The Staff Side highlighted that no offer had been made nationally by the employers, and it was hoped that the national offer would be more than Bromley Council had made via local terms and conditions. The Staff Side stated that they were likely to ballot members, and would recommend that the pay offer be rejected.
The Chairman noted that he was aware of the anticipated pay offer nationally, and that it was unlikely that this would exceed 1%.
The Chairman outlined the pay award that had been offered by Bromley Council:
It was felt by the Committee that this was a good offer bearing in mind the likely offer nationally, and considering the current economic climate.
Councillor Colin Smith noted that reserves could only be used once, but that wage increases were required annually. The money that had been set aside to invest locally was also going to be invested to raise an extra 6% income for the Council, and that this may be used in part to fund future pay awards. Councillor Smith felt that the £1.00 an hour wage increase was not sustainable.
Councillor Nicholas Bennett asked the Staff Side if they had taken into account changes to income in real terms resulting from the recent increase in income tax allowances. Mr Glen Kelly from the Staff Side responded that this was a matter that could be looked into and reported back on, if required.
The Assistant Chief Executive stated that the request from the Unions was not sustainable in the current economic climate, and the Council’s offer was reasonable.
Kathleen Smith (Vice Chairman) developed the argument that low wages for council employees would mean that more working council employees would have to claim housing benefit. This showed that there was a direct correlation between low wages and claims for housing benefit.
The Chairman concluded the discussion about the pay award by highlighting that society as a whole faced these problems, and reiterated the opinion of Members that the 1.7% being offered for those on the lowest end of the pay scale, was in fact a good offer. The Chairman felt that Bromley Council had shown social consideration and compassion.
Mr Glenn Kelly (Staff Side Secretary) stated that the pay increase in real terms equated to half the cost of the rise in inflation, and that the views of council staff would be clarified by a ballot.
Councillor Nicholas Bennett stated that if there was an increase in wages along the lines suggested by the Unions, then this would have to go to a public referendum as it may mean that Council Tax would have to rise by greater than 2%.
Kathleen Smith (Vice Chairman) developed the argument that low wages for council employees would mean that more working council employees would have to claim housing benefit. This showed that there was a direct correlation between low wages and claims for housing benefit.
The Chairman concluded the discussion about the pay award by highlighting that society as a whole faced these problems, and reiterated the opinion of Members that the 1.7% being offered for those on the lowest end of the pay scale, was in fact a good offer. The Chairman felt that Bromley Council had shown social consideration and compassion