Agenda item

Christina Hefferon, Assistant Director: Organisational Development and HR, introduced a report advising the Committee on the Council’s position on the Living Wage, National Living Wage and the Pay Award 2016/17 and 2017/18, and seeking approval for recommended actions moving forward.

It was confirmed that the Living Wage was an hourly rate set independently by the Living Wage Foundation and updated annually in the Autumn each year. Employers choose to pay the Living Wage on a voluntary basis and SBC had agreed to pay this since the 2012 local elections.

The National Living Wage was a compulsory wage to be implemented for employees aged 25 and over, with effect from 1^st  April 2016.

Christina also explained that national pay negotiations were ongoing between the trade unions and the employers. A final two-year pay offer for 2016/17 and 2017/18 was made to the Trade Unions on 9^th December 2015, which was still under consideration.

Currently, there were 6 SBC employees paid below the 2015 Living Wage. All 6 were currently paid on scp 9, pro rata for part-time hours. Paying the 2015 Living Wage would have the effect of increasing the annual full-time salary of these posts above scp 10.

To reconcile this, it was recommended that the 6 employees be paid a salary supplement, backdated to 3^rd November (the date on which the 2015 rate applied) to cease on 31^st March 2016, assuming commencement of the pay award for 2016/17 from this date. Assuming that the pay award for 216-2018 was agreed, taking effect from 1^st April 2016, the hourly rate for scp 9 for all SBC employees, would be above the 2015/16 compulsory National Living Wage for those aged 25 years and over. There would therefore be no need for SBC to take any further action in respect of the National Living Wage for 2016/17. 

In addition, 19 agency workers working in Adult Social Care were currently paid below the 2015 Living Wage. it was therefore recommended that these agency workers should be paid a salary supplement to cover the period 3^rd November 2015 – 31^st March 2016, to ensure pay parity with SBC staff.

There remained implications for SBC schools, with 80 staff currently paid below the 2015 Living Wage. It was therefore recommended that, in line with previous years, SBC write to schools to encourage (but not direct) them to comply with the Living Wage. In addition it was recommended that SBC write to advise schools of their legal obligation to pay the National Living Wage to those ages 25 and over as of 1^st April 2016, and to inform them of the Member decision to pay the National Living Wage as of 1^st April 2016, following it superseding the Living Wage.

Members were supportive of the recommendations as set out in the report.

Resolved -  (a) That SBC pay the 2015 Living Wage as a salary supplement, to six affected employees and 19 agency workers, backdated to 3^rd November 2015, the date from which the 2015 rate applied, to cease on 31^st March 2015, assuming commencement of the pay award for 2016/17 from 1^st April 2016.

  (b) That SBC pay the new national compulsory Living Wage with effect from 1^st April 2016and that this would replace the previous commitment to pay the voluntary living wage. .

  (c) That the AD for OD/HR write to schools to:

(i)  Encourage, but not direct them, to pay the 2015 Living Wage from 3^rd November 2015 to 31^st March 2016.

(ii)  Advise them of their legal obligation to ay the National Living Wage from 3^rd November 2015 to 31^st March 2016.

(iii)Advise them that SBC will pay the National Living Wage with effect from 1^st April 2016.