1. Pay and Reward Reform in Local Government
Jan Parkinson
Managing Director,
LGE

2. What is Local Government Employers?
Part of the Local Government Association group of “central bodies”
Negotiate pay and core conditions for most local government staff
Work on behalf of local councils as employers on a range of issues including pensions and employment law
However, local government has a highly localised pay structure with decisions on grading and pay progression made by individual councils

3. Current LGE activity
Our role is to advise and encourage councils
We are providing information on how to cut and control employment costs
We are developing good practice around ensuring that employees stay engaged and committed despite job losses and negligible pay increases – including flexible benefits etc
We are making strong arguments in favour of national collective bargaining as the best way to produce affordable, realistic pay deals with minimal industrial unrest

4. A few facts on the local government workforce
1.4 million employees in mainstream LG jobs
75% Female
56% Part-time (90% Female)
7.5% from minority ethnic groups
61% of employees on lowest 14 scale points, 10% on top 15
Recruitment difficulties in managerial and professional grades not lower end
31% of the workforce to retire in next decade
9% of the Local Government workforce have no qualifications at all, 15% have a qualification below level 2

5. From boom to bust
2008 – growth and investment for the future
2009 – recession and cost-cutting
2010 – beginning of long-term period of budget constraint

6. Strategy, what Strategy?
We are having to behave in an entirely reactive way at the moment
Is there really any place for strategic thinking?
Of course, we need a clear vision of a redesigned local government workforce
But local government has a longstanding culture that will take time – and investment – to change

7. Some of the challenges we face
Reducing sickness absence
Pensions costs and revaluation
Pay levels in a tight financial climate
Industrial Relations
Skills shortages and skill levels
Partnership working
Equal pay costs
Providing customer-centric services
Workforce and succession planning
A new, smaller workforce
Having visionary leaders to drive change
Linking pay to performance