Apologies were received from Cllr A Johnson

To receive details of any member nominated to attend the meeting in place of a member of the panel.

Cllr BA Baker substituted for Cllr A  Johnson.

To receive any declarations of interest by members in respect of items on this agenda.

There were no declarations of interest.

To approve and sign the minutes of the meeting held on 11 September 2015.

Resolved:

That the minutes of the last meeting held on 11 September 2015 be approved.

To consider a draft pay policy statement for recommendation to council; to update the employment panel about implementing the living wage, and the current national pay negotiations.

The chief executive presented the draft pay policy statement, noting the positive reduction in interim senior management posts since the previous year’s report, including appointment to the substantive posts of director of adults and wellbeing, assistant director adults and wellbeing commissioning, assistant director safeguarding and family support, and the director of resources. The success of these appointments demonstrated that the council was able to meet market demand and recruit high quality professionals.

The chief executive provided an update on consideration of options for introduction of the living wage.  Following the government’s requirement for employers to adopt the national living wage from April 2016 work had not been progressed on options to introduce the more costly optional living wage foundation rate.  Should the national pay negotiations result in adoption of a higher rate of pay for future years, the medium term financial plan would be adjusted accordingly.

The chief executive summarised aspects of the report. Key points included:

-          The estimated costs of implementing the £7.20 minimum wage which must be implemented by April 2016 had been accounted for in the 2016/17 budget and in the medium term financial strategy for future years.

-          Whilst the council was responsible for the additional costs arising from the statutory national living wage rate introduction for council employees (including schools), in general contractors retained responsibility for the additional costs arising for their own employees.

-          Implementation costs are considered for different elements of council business, noting that the greatest absorption of cost is in the use of contractors.

-          Very few new employees entering the authority recently were at a level below the national living wage.

-          It was concluded that implementing the Living Wage Foundation wage rate of £8.25 would have a significantly greater adverse impact on the council’s finances than implementing the statutory national living wage rate of £7.20.

-          The national living wage would only be a statutory requirement in relation to employees aged 25 and over; this would create an aged based differential in pay which does not currently exist in Herefordshire, and engagement with trade unions over this issue would be undertaken.

-          As negotiations over implementation were still ongoing at a national level, the rate of adoption of the national living wage may be subject to change.

Responsibility for national living wage implementation costs

The council was responsible for the costs of implementing the national living wage in respect of its own employees and for those in council maintained schools. The following additional points were noted:

-          Implementation costs for employees of council contractors would only be the responsibility of the council where contracts so specified (eg in cases where TUPE regulations still applied).

-          Contractors would otherwise remain liable for the costs of implementing the national living wage for their employees. Any potential impact these additional costs may have on the level or range of service provided would be a matter for negotiation between individual contractors and the council.

-          Some provision against such costs had been  ...  view the full minutes text for item 14.