Agenda item

The Staff Side have requested that the Pay Award for 2022/23 be discussed as a matter of urgency.

The  Staff Side had requested that the matter of the Council's pay award for 2022/23 be discussed.

The Vice Chairman stated that the national position with respect to pay increases had been clarified and implemented. The Staff Side was hoping that  the Council would acknowledge that the LBB pay award was insufficient and that it would be improved. They were also seeking for the implementation of the London Living Wage.

It was noted that the Council's pay award which had been implemented in April 2022 had been 2.25%. It was further noted that the recent national award was for £2229.00 to be paid as a flat rate for each employee in outer London. The Vice Chairman said that there had been speculation concerning a possible 1.79% top up to the Council's current level of pay. However, even if this was implemented, it would still be insufficient and may not be back dated.

The Vice Chairman stated that for BR3 grades, a 10.89% pay award would be required to align with the national agreement. She said these members of staff were now £1772.00  per annum worse off than if the national award had been applied. Even if the 1.79% was implemented this year (2022/23), then that would still leave them £1400.00 worse off. The Vice Chairman said that even for BR14 grades, there would still be a shortfall and they were £1000.00 worse off. She continued and said that staff sitting on spinal points 9--14 were below the London Living Wage by up to 89p per hour.

The Vice Chairman said that because Bromley’s pay awards were based on percentages rather than flat rates, it benefited those at senior and Director levels far more than the average member of staff. The Vice Chairman requested that LBB address the issue of financial deficit for staff and whilst not wishing to revisit in detail the financial challenges which were raised at the last LJCC regarding the cost of living / energy price crises, she highlighted that food inflation was now 14.3 percent. She said that these details had been passed on to the Human Resources Department. She requested that this matter be addressed and also in year as staff are currently facing the cost of living crisis. The Vice Chairman said that some members of staff were exiting the pension scheme because they could not afford to remain in.

The Chairman thanked the Vice Chairman for providing the statistical information and said that Bromley Council normally allocated pay rises by percentages as this would maintain differentials for seniority. He said that the Council recognised and acknowledged the current shortfall.

The Leader of the Council asked for it to be made clear that the Council did not recognise the London Living Wage. The Council had no desire for external rules to be imposed upon it, particularly if those rules meant forcing the Council to pay for something it was not able to afford.

The Leader said that there had been a recent meeting with Departmental Representatives regarding the pay settlement and in his view the meeting was a positive one. He said that when the 2.25% award was previously agreed from the 1st of April 2022, it had been fair and reasonable, bearing in mind the financial position and market rates at that time. No one could have predicted  the subsequent rise in inflation. He said that in the next budget there would be an adjustment for 2022/23 and that the pay increase for 2023/24 would be implemented at the same time. He was confident that these increases would be approved no later than the Executive meeting in January 2023.

Thomas Carver said that the feedback from staff receivedby the Departmental Representatives was that they were disappointed with the amount being offered and that there would be no pay award until April 2023. This would not help staff during the difficult winter months. He pointed out that within Children’s Social Care, there had been an in-year increase in the budget of £2.3m to cope with increased pressures. Resultantly, staff had found it difficult to accept that an in- year adjustment to the budget with respect to pay was not possible.

The Chairman commented that he hoped staff would be patient until the April pay award which he was confident would be generous and would compensate for the difference between Bromley’s last pay award and the delayed national settlement. A Member pointed out that LBB always paid its staff promptly, whereas in other local authorities there was a delay in payment while the pay award was being negotiated. 

A Member expressed concern because of comments from the Staff Side saying that members of staff were dropping out of the pension scheme. He wondered if reliable data was available to clarify the current position. The Director of Human Resources said that he had not seen data to indicate staff were opting out of the pension scheme. Thomas Carver responded and said that he personally knew people who had dropped out of the pension scheme. Mr Carver also referenced agency staff and expressed the view that many of them stayed as locum or agency staff due to financial pressures and so could not afford to pay into the pension scheme;

A Member who also served on the Pensions Committee stated that the Pensions Committee received a report on scheme numbers and as far as he was aware the report had not indicated a drop in the figures. It was suggested that the relevant page from the Pensions Committee report be circulated to Members for information.

The Director of Human Resources said that whilst there were challenges in recruitment and retention of staff, these had nothing to do with the current pay situation. The information that he was aware of indicated that there was no decline in the number of staff participating in the pension scheme. He further commented that agency staff had been employed for many years. Mr Carver responded and said that it was factually incorrect to assume that the current economic climate was not having an impact.

Cllr Fawthrop said that staff should seek help if required and queried whether they could ask for an ‘advance payment’ from their salaries. 

RESOLVED that the update on the Council’s Pay Award be noted.