The following matter will also be referred to the Council by the Employment and Appointments Committee at its meeting on 28 February, 2012:

• Pay Policy Statement 2012/13 (Minute attached)

The Localism Act 2011, requires the Council to approve a Pay Policy by 31 March, 2012.

The Council gave consideration to minute 67 of the Employment and Appointments Committee held on 28 February 2012 and to the report of the Director of Law, HR and Asset Management in relation to the Pay Policy Statement 2012/2013. His report was submitted, in accordance with Section 38 of the Localism Act 2011, which required Council’s to determine and publish annual pay policy statements.

The Employment and Appointments Committee –

(1)  Noted the Council’s Pay Policy Statement 2012/13.

(2)  Recommended to Council, for approval, the Council’s Pay Policy Statement 2012/13.

(3)  Noted that the proposed introduction of the Living Wage was included within the Council’s Pay Policy Statement 2012/13.

(4)  Noted the responsibility of the Employment and Appointments Committee to ensure the provisions set out in the Pay Policy were applied consistently throughout the Council, and to recommend any amendments to the Full Council.

(5)  Approved that Wirral Council become an advocate of a living wage.

On a motion by Councillor Jeff Green and seconded by Councillor Lesley Rennie, it was –

Resolved (65:0) (one abstention) – That the Pay Policy Statement 2012/2013 be approved.

The Director of Law, HR and Asset Management submitted a report, in accordance with Section 38 of The Localism Act 2011, which required Councils to determine and publish annual pay policy statements.

The draft statutory guidance on The Localism Act 2011 recommended that a Committee be given responsibility to coordinate a collective review of the appropriateness of the Pay Policy Statement at least annually, and to make recommendation to the Full Council.

The requirements of the Act included:

1. The Pay Policy statement to be approved by The Full Council, in advance of the financial year to which it relates.
2. The first Pay Policy Statement to be prepared for 2012/13.
3. The Pay Policy Statement to be published on the Council website.

The Pay Policy Statement was required to set out the Council’s policies relating to the following:

1. Chief Officer remuneration, including salary, allowances, and enhancements at termination.
2. Remuneration of its lowest paid employees.
3. The relationship between Chief Officer remuneration and that of other employees.

Responding to comments from Members, the Head of HR and Organisational Development referring to the paragraphs in the policy on the relationship between Chief Officer remuneration and that of other employees, this would be shown as the multiple between the lowest paid employee and average Chief Officer earnings and those of the average full time equivalent earnings and the Chief Executive. The Council would use the local government norm as a standard so that benchmarking would be like for like. The figure for the multiple between the lowest paid and the Chief Executive could also be published if it was felt to be useful.

In line with guidance under The Localism Act, proposed appointments to posts with remuneration exceeding £100,000 would be subject to a vote at Full Council and the Head of HR and Organisational Development would confirm whether or not this was a requirement or guidance.

Concern was also expressed about contractors employed by the Council paying a living wage too. 

On a motion by Councillor Johnston, jointly seconded by Councillors Green and A Jones, it was agreed unanimously that the following be added to the recommendation -

‘That Wirral Council become an advocate of a living wage.’

The Leader of the Council requested that a report be brought to an early Cabinet on what being an advocate of a living wage would entail.

Resolved – That this Committee:

(1)   notes the Council’s Pay Policy Statement 2012/13.

(2)   recommends to Council, for approval, the Council’s Pay Policy Statement 2012/13.

(3)  notes that the proposed introduction of the Living Wage is included within the Council’s Pay Policy Statement 2012/13.

(4)  notes the responsibility of the Employment and Appointments Committee to ensure the provisions set out in the Pay Policy are applied consistently throughout the Council, and recommend any amendments to the Full Council.

(5)  approves that Wirral Council become an advocate of a living wage.