P ay review and new terms and conditions Employee Consultation Session Andrew Travers Chief Executive, London Borough of Barnet Graeme Lennon HR Strategic Director February 2016

Aims of this session Brief employees on the Unified Reward proposals, progress so far, the outcome of TU negotiations and detailing next steps Gather feedback on the proposals and inform employees how they can input to the consultation xWe will not be discussing individual circumstances xThe information given today is subject to change following the outcome of consultation and committee approval

Agenda 1.Welcome and introduction 2.About Unified Reward & progress so far 3.New pay model 4.Terms and conditions review 5.Next steps – Unified Reward timeline 6.More information 7.Q&A session

About Unified Reward & progress so far Andrew Travers

What is Unified Reward? The Unified Reward project is; ●A review and redesign of the pay and grading structure ●A harmonisation of terms and conditions across the council We want; To be a fair, attractive and competitive employer Spending focussed on current and future need Scope to address emerging skills shortages What Unified Reward is not doing… xUnified reward is not a cost saving exercise Unified Reward is being implemented across all council employees including senior managers and support staff in community schools. (Excluding Education and Skills)

September 2012 June 2014 October 2014 November 2014 October 2015 January 2016 February 2016 Unified Reward – Progress so far Council and Trade Union Consultations with staff start Open between Council & Trade Unions Between Council & Trade Unions focus on Job evaluations and pay and grading structure Job ‘sizing’ and evaluations July 2014 – February 2016 Bottom up review approved Between Council & Trade Unions focus on job evaluations and pay and grading structure Remuneration Committee Negotiations Consultations Negotiations Close Council and Trade Unions agree Start of Review October – December 2015 Planning changes to CoreHR & Resourcelink

Your comments in the Staff Survey told us some things need to change… Listening to you… Ensure pay and the Job title reflect the job being done Make pay fair Increase pay for lowest paid workers Link pay to performance Reward those who go the extra mile

New Pay Model Andrew Travers & Graeme Lennon

New Pay Model The pay model has been reviewed and redesigned to cutting down over 300 pay grades Each grade will have a range of pay allowing the opportunity for progression Base pay has increased to align with other councils and comparable organisations. Reducing Grades and complexity Introducing a range of pay Increasing base pay Key Changes

New Pay Model GradeMin £Max £ Grade A 16,83317,748 Grade B 17,74818,783 Grade C 18,38120,193 Grade D 19,52421,552 Grade E 20,85623,334 Grade F 23,33426,277 Grade G 26,27729,727 Grade H 28,93531,986 Grade I 31,98635,655 Grade J 36,55841,073 Grade K 43,86948,475 Grade L49,45155,384 New Pay and Grading Structure ●12 new grades ●7 senior management grades previously implemented ●Replaces over 300 grades ●Base pay increased to align with comparable councils

New Pay Model Impacts of the new pay and grading structure Impacts on Base Pay NegativeNeutralPositive No.% % % %153948% % ●Over 90% of employees will receive the same or a higher basic rate of pay following the implementation of Unified Reward ●As with any review that redefines the pay and grading there are some employees whose salary will reduce

New Pay Model ●Automatic increments have been removed from grades ●Annual % increase to base pay dependent on performance, to be consolidated into the employees base pay ●If an employee achieves ‘outstanding’ for two or more years potential for an additional reward ●Line manager training on reviewing performance and detailed guidance on ratings coming soon. Pay Progression & Performance Related Pay RatingNew RatingIncrease RedDevelopment Needs0% AmberSatisfactory0.5% GreenGood2.25% GoldOutstanding3% First increase based on performance in April 2017

New Pay Model Barnet Living Wage ●The Barnet Living Wage is embedded within our pay structure Cost of Living Awards ●To continue being applied to grades A to L London Weighting ●To be consolidated into base pay for all staff Other Pay Awards

New Pay Model Detrimentally impacted employees ●The current pay protection arrangements apply from contractual notice to a maximum of 12 months depending on continuous service. ●Protection will be in place for 12 months from the date of implementation for employees detrimentally impacted by Unified Reward. ●Thereafter 6 month pay protection will be the normal practice Pay Protection

Terms and Conditions Review Andrew Travers & Graeme Lennon

Terms and Conditions Review ●Currently annual leave varies depending on; - Grade - Length of service - Differing terms and conditions ●Levels of leave vary across the council from 24 – 36 days ●Public Sector average days ●All employees will be entitled to 30 days annual leave Annual leave Current annual leaveNew annual leave days31 days for leave year 2017/18 then 30 days from 2018 onwards 30 days30 days from April days30 days from April 2017

Terms and Conditions Review ●The Council’s sickness levels are amongst the highest within London local authorities - we need to change council culture and address this. ●A revised sickness management approach with new sickness triggers to address short-term sickness. ●The triggers are not intended to impact those with disabilities, long term illness or life threatening conditions. ●A trial period of 12 months before possible introduction of salary deductions. ●Management discretion when enforcing triggers. New Sickness Procedure TriggerSickness levelSalary Deduction 18 days or 3 occurrences within12 months1 days’ pay 2Another occurrence/absence within 12 months2 days’ pay 3Another occurrence/absence within 12 months3 days’ pay

Terms & Conditions Review ●Standard 36 hr working week, Monday – Friday, ●Working day between the hours of 6am – 10pm ●Contractual overtime will cease ●48 hours a week max – rolling 4 week average ●Pay will be according to the number of weeks per year employees are required to work ●Term time only workers will have their pay pro-rated based on the actual number of weeks per year they work Working Week, Overtime and Bank Holidays

Terms & Conditions Review Working Week, Overtime and Bank Holidays Overtime TypeRatePercentageAlternative Saturday ratex1.2525%N/A Sunday ratex 1.550%N/A In excess of 36 hrs per weekx1.2525%N/A Out of Hrs (22:00-6:00)x1.550%N/A Bank Holidayx2.0100%Day off in Lieu Rates above apply to employees on Grades A - F ●To support service delivery a number of local time off in lieu (TOIL) arrangements are used, these will continue ●Overtime must be requested and agreed with a manager in advance to ensure enhanced rates are paid

Terms and Conditions Review ●Current casual and essential car user mileage rates and allowances will stay the same ●Public sector average 2,500 miles before essential user given ●New criteria of 2,500 miles per annum before essential car status will be applied ●This works out as 11 miles per working day ●These changes will have no impact on parking spaces until the move to Colindale in 2017 Car Allowances

Terms & Conditions Review ●The Council faces challenges recruiting to some key groups of employees ●2 schemes for either recruitment or retention ●Maximum 10% additional pay for each scheme ●To replace existing Market factor supplement payment Recruitment and Retention

Other changes We are also exploring introducing the following benefits… Employee Benefits Scheme Childcare Vouchers High Street Discounts Cycle to Work Lease Cars Purchase Annual Leave Discount Leisure 50+ Annual Health Checks40-49 Bi-Annual Health Checks Health and Wellbeing Manager Development Development programmes for current managers and aspiring managers Employee Benefits Scheme

In the Staff Survey you said: Listening to you… The Unified Reward project has: Undertaken 600 job evaluations covering over 5000 employees Compared similar roles across the council and with other councils or organisation More than 90% of employees will receive a higher or the same basic rate of pay Set ranges that allow for pay progression based on the rating received in the annual performance review Agreed additional rewards for employee’s achieving ‘outstanding’ in their performance review 2 years in a row. Ensure pay and the job title reflect the job being done Make pay fair Increase pay for lowest paid workers Link pay to performance Reward those who go the extra mile

Next Steps – Unified Reward Timeline Andrew Travers

8 March March 2016 April October March March 2016 May / July April 2017 Unified Reward - Next Steps Consultation ends General Functions Committee Job Evaluation Letter & New Contract Unified Reward Implementation Corporate Staff Schools Staff

Unified Reward - Next Steps 8 March 2016 Consultation ends During Consultation ●Opportunity for employees to participate via voting buttons ●Information available in hard copy, on BarnetWork Intranet, on Barnet website ●Feedback and queries can be directed to dedicated Unified Reward helpline. ●Feedback via your Trade Union 8 March 2016

Unified Reward - Next Steps Job Evaluation and New Contract April 2016 ●Line Managers will receive documents to give to employees ●Information will include job title, grading, salary and new terms and conditions ●Employees will have the opportunity to appeal against their job evaluation ●Employees will be asked to read, sign and return one copy of the new contract within a defined period to confirm their agreement May / July 2016

More information If you want to know more or would like to review the information provided in this session: Barnet Work – Home / Barnet Staff Voice / Unified Reward Internet – Queries In the first instance speak to your Line Manager Unified Reward Helpline T: (option 1) E: Feedback to the Consultation Via your Trade Union Unified Reward Helpline T: (option 1) E:

Q&A Session Andrew Travers and Graeme Lennon