Contents
Report 9 of the 25 Jul 02 meeting of the Human Resources Committee and discusses the funding of the restructuring of civil staff pay and grading and the current position in relation to appeals from staff about their assimilation into the new pay band structure.
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Civil staff pay and grading – update on funding and appeals
Report: 09
Date: 25 July 2002
By: Commissioner
Summary
The MPA Human Resources Committee requested an update in relation to the funding of the restructuring of civil staff pay and grading and the current position in relation to appeals from staff about their assimilation into the new pay band structure. This report sets out the current position.
A. Recommendations
That
Members note the contents of this report.
B. Supporting information
Background
1. Changes to the pay and grading structure of MPS civil staff were introduced in February and March 2002 following a review by Hay Group Ltd consultants and extensive negotiations with the recognised trade unions. The new structure was effective from 1 August 2001.
2. Funding for the improvements in pay (which included changes to location allowance referred to in earlier reports to the Committee) was provided in the £22.2 million approved for 2001/02. The Committee approved the way forward at a presentation by the Hay Group at its meeting on 1 November 2001.
Funding
3. It was made clear during the presentation referred to above that there would be a financial impact of moving to a time-based incremental structure. It was estimated that this cost would be in the region of £5 million in a full year, on the assumption that the pay bill would increase by 2% per annum as staff moved up the incremental pay ranges. This would be in addition to the £22.2 million already provided. Consequently, a bid was made for an additional £5 million in 2002/03.
4. At the Finance, Planning and Best Value (FPBV) Committee meeting on 6 December 2001, the provision for the full year effect for 2002/03 was amended to allow for an additional £7.5 million. This comprised the £5 million referred to in the preceding paragraph plus another £2.5 million to provide for the potential impact of approving higher pay ranges for certain specific groups of staff during negotiations with the trade unions.
5. Following the FPBV Committee meeting on 18 April 2002, the MPS Director of Finance wrote on 2 May 2002 to the Chair of the HR Committee setting out the details of the revised expenditure forecast on civil staff pay.
6. In summary, the position in relation to expenditure arising specifically from the pay review is as below.
| Year | Available | Expenditure |
|---|---|---|
| 2001/02 | £10.3 m (pay) | |
| £ 9.1 m (location allowance) | ||
| £19.4 m | ||
| 2002/03 | £22.2 m + | £16.1 m (pay) |
| £7.5 m | £9.1 m (location allowance) | |
| £4.2 m (increments) | ||
| £29.4 m | £29.4 m |
Appeals
7. The new pay band structure effectively divided each of the previous grades into two pay bands. The upper band for each recognised the additional levels of responsibility exercised by staff in that grade. For example, station reception officers and communications officers at grade 12 went into pay band E whereas other generalist grade 12 staff such as correspondence clerks went into band F. Those staff who went into a lower band for their former grade had nothing to lose by appealing against their assimilation. Many were lodged together in group appeals, such as finance clerks, property store clerks. Approximately 750 appeals covering about 2,500 members of staff have been submitted.
8. The following table sets out the position in relation to appeals dealt with as at 5 July 2002.
| Total considered | |
|---|---|
| Cases | 411 |
| Jobholders | 1622 |
| Appeals upheld | |
| Cases | 119 |
| Jobholders | 819 |
9. The remainder of the appeals will be concluded by the end of July 2002.
10. Those jobholders whose appeals have been dealt with have been informed of the outcome, whether successful or not, by their line managers. There is no diversity data covering gender or ethnic background; such information was not requested as part of the appeal process. A trade union observer sits on each of the appeal evaluation panels and is available to comment on the openness and fairness of the process.
11. The appeal process and the outcome will be subject to a full review and a further report will be made to the HR Committee about the outcome of this review.
C. Financial implications
1. The paper considered by the HR Committee on 7 March 2002 noted that there were no financial implications over and above the additional funds already made available for improvements to civil staff pay. The additional information provided in paragraphs 3 and 4 of section B above set out the extra funds, totalling £7.5 million, now made available for 2002/03.
2. On the assumption that 1,000 jobholders will be successful in their appeals, the full year cost is estimated to be in the region of £3 million. This will be funded from the balance of funds from the total additional money made available as set out in paragraph 6 of section B above. This element has been included in the Medium Term Financial Forecast.
D. Background papers
None.
E. Contact details
Report author: Ian Wardrop, HR Directorate, MPS.
For information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
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