Agenda item

10.1

The Executive Director, Resources, submitted a report regarding the introduction of the Living Wage for Sheffield City Council.

10.2

RESOLVED: That:-

(a)

the Living Wage be introduced in Sheffield City Council;

(b)

Cabinet approves the approach to implementation outlined within the report; and

(c)

the Council promotes a Living Wage for Sheffield with partners across the City in public, private and voluntary sector organisations.

10.3

Reasons for Decision

10.3.1

Following a resolution at Council on 7 November, 2011, to support the Administration’s commitment to providing the Living Wage of £7.20 per hour for all Council employees from 1 January 2013 (rising to £7.45 from 1 April 2013), as directed, this report is presented to Cabinet to outline plans to implement a Living Wage in the Council and to promote a Living Wage for Sheffield involving partners across the City in public, private and voluntary sector organisations.

10.3.2

It is recommended that the Living Wage is implemented for Sheffield City Council employees via a Collective Agreement with the Trade Unions because it is the most robust approach.  This would cover schools would thus ensuring a consistent approach across the authority.

10.3.3

The chosen method of implementation is via a supplement using basic pay rates as this provides the authority with the best legal justification and ensures the grading structure is not undermined.

10.4

Alternatives Considered and Rejected

10.4.1

The Council intends to seek a collective agreement to implement the Living Wage.  If this is not possible, it may be imposed by individual contract variation.  Whilst the likelihood of a challenge is limited, it would be difficult to defend legally if challenged.

10.4.2

Consideration was given to amending the grading structure rather than introducing a supplement.  This would increase the risk of equal pay claims as previously posts in grade 1 and 2 were determined via the Job Evaluation Scheme to be of different values.  The cost of this approach would be £169k (£210k including on-costs) outside schools, and £768k (£960k with on-costs) in schools.

10.5

Any Interest Declared or Dispensation Granted

None

10.6

Reason for Exemption if Public/Press Excluded During Consideration

None

10.7

Respective Director Responsible for Implementation

Laraine Manley, Executive Director, Resources

10.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Overview and Scrutiny Management Committee

10.1

The Executive Director, Resources, submitted a report regarding the introduction of the Living Wage for Sheffield City Council.

10.2

RESOLVED: That:-

(a)

the Living Wage be introduced in Sheffield City Council;

(b)

Cabinet approves the approach to implementation outlined within the report; and

(c)

the Council promotes a Living Wage for Sheffield with partners across the City in public, private and voluntary sector organisations.

10.3

Reasons for Decision

10.3.1

Following a resolution at Council on 7 November, 2011, to support the Administration’s commitment to providing the Living Wage of £7.20 per hour for all Council employees from 1 January 2013 (rising to £7.45 from 1 April 2013), as directed, this report is presented to Cabinet to outline plans to implement a Living Wage in the Council and to promote a Living Wage for Sheffield involving partners across the City in public, private and voluntary sector organisations.

10.3.2

It is recommended that the Living Wage is implemented for Sheffield City Council employees via a Collective Agreement with the Trade Unions because it is the most robust approach.  This would cover schools would thus ensuring a consistent approach across the authority.

10.3.3

The chosen method of implementation is via a supplement using basic pay rates as this provides the authority with the best legal justification and ensures the grading structure is not undermined.

10.4

Alternatives Considered and Rejected

10.4.1

The Council intends to seek a collective agreement to implement the Living Wage.  If this is not possible, it may be imposed by individual contract variation.  Whilst the likelihood of a challenge is limited, it would be difficult to defend legally if challenged.

10.4.2

Consideration was given to amending the grading structure rather than introducing a supplement.  This would increase the risk of equal pay claims as previously posts in grade 1 and 2 were determined via the Job Evaluation Scheme to be of different values.  The cost of this approach would be £169k (£210k including on-costs) outside schools, and £768k (£960k with on-costs) in schools.

10.5

Any Interest Declared or Dispensation Granted

None

10.6

Reason for Exemption if Public/Press Excluded During Consideration

None

10.7

Respective Director Responsible for Implementation

Laraine Manley, Executive Director, Resources

10.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Overview and Scrutiny Management Committee

(NOTE: Councillor Julie Dore declared a personal interest in the above item as there was a possibility that her son would be affected by the proposals.)