Agenda item

To consider a report by the Head of Finance and Property and the Pay and Rewards Specialist (copy attached).

The Lead Member for Finance, Performance and Strategic Assets, Councillor Julian Thompson-Hill introduced the Real Living Wage report (previously circulated).

County Council originally considered the implications of paying the Real Living Wage in December, 2018 and then in January 2020 following the national pay negotiations.  It was then requested that the Council received a further report in January 2021 to consider the current situation and if there was a differential between the National Pay Award and the Real Living Wage whether or not to pay the Real Living Wage to its staff in the following financial year.

There are two levels of living wage. The National Living Wage which is set by Government and all employers are legally obliged to pay, and the real Living Wage which is assessed and set by the Real Living Wage Foundation in November each year.

Recent local government pay awards had sought to ensure that the lowest pay grades would be paid above the real living wage rate. Subsequent increases in the level of the real living wage have resulted in Grade 1 and the bottom point of Grade 2 falling below that rate. The Council currently has 725 staff who are paid below the current real living wage level.

Employers had six months following the November announcement to implement the increase in the real living wage level and given the wider financial situation the Council were in regarding Covid, if implemented in year it would add additional pressure.  Therefore, it was stated it would be advantageous to utilise the six-month period and implement it in the next financial year having regard to the national pay award.

Following a brief discussion, Councillor Graham Timms proposed further recommendations as follows:

(i)            To backdate to April 2020 the Real Living Wage amount for those who would have lost out at the last pay deal at a cost of approximately £17,000 per annum

(ii)          For the financial year 2021/2022 DCC pay the Real Living Wage as set in November 2020 to all staff who would be below it and that would cost £37,500, and

(iii)         Propose the Lead Member for Finance bring back a report to Council with a costing and a route map of how the Council could become an accredited Real Living Wage Employer.

Councillor Graham Timms proposed the additional recommendations seconded by Councillor Barry Mellor.

The Strategic HR Manager explained the second recommendation could raise issues between Grades as it would affect pay relativities and have potential equal pay implications.Work would need to take place to assess the risk caused to the Council prior to agreement.

Members agreed that officers would need to do work of what the consequences would be financially in 2021/2022 which would be dependent on pay awards which may or may not be agreed during that time.  

Therefore, it was agreed that the following two recommendations be put forward to vote:

(i)            All council employees receive the real living wage for the financial year 2020/2021 which would involve backdating the pay of those on spinal column point 1 who are on £9.25 per hour, up to £9.30 per hour which would cost £17,500, and

(ii)          The Lead Member bring back a report to Council with a costing and a route map as to how the Council could become an accredited real living wage employer.

Both Councillors, Graham Timms and Barry Mellor, the original proposer and seconder, agreed to this.

A vote took place on the amendment to the recommendation and it was unanimously agreed.

Therefore, following agreement to the amendment, a vote took place on the substantive recommendation and it was unanimously agreed.

RESOLVED that:

(i)            All Council employees receive the real living wage for financial year 2020/2021 which would involve backdating the pay of those on spinal column 1 who are on £9.25 per hour up to £9.30 per hour which would cost £17,500

(ii)          The Lead Member bring back a report to Council with a costing and a route map as to how the Council would become an accredited real living wage employer.