Members are asked to consider whether they have any disclosable pecuniary or non pecuniary interests in connection with any item(s) on this agenda and, if so, to declare them and state the nature of the interest.

Councillors George Davies and Adrian Jones declared disclosable non-pecuniary interests as members of a Trade Union.

A report by the Chief Executive sought authority for him to consult with the Trade Unions and workforce on a range of issues to enable the Council to meet its budget deficit for 2013/14. 

The Head of HR and Organisational Development introduced the report informing the Committee that the Council was facing a considerable financial challenge to reduce its net budget.  The current position was that the Council was facing a budget deficit of £100m or so over the next three years and a projected deficit of £39M for 2013/14.  The Committee was told that this would necessitate significant changes to the manner in which the Council conducted its business. 

The report informed the Committee that officer options for budget savings would be published shortly.  These had the potential to change service delivery which would potentially impact on staff.  This, therefore, required consultation at the earliest possible opportunity.

All options for addressing the Council’s budget deficit were being considered.

It was noted that the Council had a legal obligation to consult with the workforce on business and service changes that may affect the workforce.  The requirements for consultation were laid out in the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA).  The Council welcomed consultation with the Trade Unions and staff to consider all proposals to meet the financial challenge.

The Committee noted that the issues requiring consultation were as follows:

(1)  There was a proposal to reduce the running costs for the Council through its management costs.  The Chief Executive had brought a proposal to strengthen the strategic leadership for the Council as part of the Improvement Programme to meetings of the Cabinet and this Committee on 18 September 2012 (Minute No. 21 refers).  At that stage it was agreed that further restructuring would follow to fund the new roles of Strategic Director and also to reduce the overall management cost for the Council. To deliver this agreement, the Council would consider options to reduce the number of managers across the Council.  This option would require consultation with all managers and the Trade Unions.

(2)  The Council currently employed its workforce on national and local conditions of service.  The local conditions of service were subject to a local agreement through a collective agreement with recognised Trade Unions (JNC Recognition Agreement with Trade Unions).  Consultation with recognised Trade Unions and staff were required to consider options to reduce the cost of the workforce and so reduce the potential numbers of job losses.

(3)   Options needed to be considered with the aim of reducing the costs to the Council and the local tax payer of the Council's enhanced discretionary severance scheme.  The aim would be to seek ways to reduce the costs, which would in turn protect more jobs and services, whilst keeping an enhanced scheme to reduce the potential impact on the lowest paid.

(4)  In the event that the scheme was modified any staff leaving after a new scheme came into effect had to leave on  ...  view the full minutes text for item 37.