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 J Green, M Johnston and G Davies all declared disclosable non-pecuniary interests as they each had family members who worked for Wirral Council.

A report by the Chief Executive informed 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 approximately £109m over the next three years.  The projected deficit for 2013/14 was currently £39m, with exception items at £38.4m, giving a total of £77.4m for 2013/14.  Consequently, this would necessitate significant changes to the manner in which the Council conducted its business and this would impact on the Council’s workforce. 

The Council currently employed its workforce on national and local conditions of service. The local conditions of service were subject to local agreement through a collective agreement with recognised Trade Unions (NJC Recognition Agreement with Trade Unions). The Council had a legal obligation to consult with recognised Trade Unions and staff on options to reduce the cost of the workforce and so reduce the potential numbers of job losses.  The requirements for consultation were laid out in the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA).  

As part of the consultation, the Council was required to consult on the terms of the Enhanced Discretionary Severance Scheme.  Consultation in relation to the proposal to change the Council’s Enhanced Discretionary Severance Schemehad begun on 12 November 2012.  During this period of consultation, the Council had met with the recognised Trade Unions through a series of regular meetings, with the aim of seeking agreement and to consider the Trade Unions feedback in relation to the Council’s budget shortfall for 2013/14. 

All employees affected by the proposal to change the Council’s Enhanced Discretionary Severance Scheme had received a letter on 23 November 2012.  The letter had informed that the Council had opened consultation with the Trade Unions in relation to changing the current Scheme to a Scheme that was more affordable for the Council.

The Cabinet at its meeting on 7 February 2012 had received a report titled: Proposal to Change the Council’s Enhanced Discretionary Severance Scheme.  The report had provided the Cabinet with a range of options to change the Council’s Enhanced Discretionary Severance Scheme, including an update on the consultation process in relation to this.  The Cabinet had considered the options and the consultation feedback.  It had considered that the Council’s current Enhanced Discretionary Severance Scheme was unsustainable going forward and had made recommendations to the Employment and Appointments Committee to change it by applying a 1.8 multiplier instead of the  2.2 multiplier that was currently applied.  (Minute No. 183 refers)

The Chief Executive introduced his report and informed that the Council had a duty to keep its Scheme under review and ensure that it was both practical and affordable.  He advised that the application of the 2.2 multiplier was not practical or feasible. The Council would have to make deeper cuts to finance the current scheme, placing further pressure upon the Council’s budget.

Appended to the report were a range of options, with costs, for the Council’s Enhanced Discretionary Severance  ...  view the full minutes text for item 60.

The Committee was asked to consider calling a Special meeting on 18 February 2013 to consider and make decisions on employees’ terms and conditions of service.

RESOLVED:

That no Special meeting of the Committee be called for 18 February 2013 and instead a report be presented to the Budget Cabinet meeting scheduled for 18 February 2013, for debate and determination which will form a recommendation to the Council.