ROYAL BERKSHIRE FIRE AUTHORITY

Transcription

1 ROYAL BERKSHIRE FIRE AUTHORITY COMMITTEE MANAGEMENT COMMITTEE DATE OF MEETING 17 JULY 2017 SUBJECT LEAD OFFICER LEAD MEMBER EXEMPT INFORMATION ACTION NJC PAY NEGOTIATIONS CHIEF FIRE OFFICER, TREVOR FERGUSON BUDGET LEAD LEADER, CLLR PHILIP BICKNELL NONE DECISION 1. EXECUTIVE SUMMARY 1.1 The National Joint Council (NJC) has made an offer of a 2% pay increase from the 1 st July 2017 and a further 3% from the 1 st April The 3% is conditional of Central Government funding and agreement on issues related to Emergency Medical Trials and Marauding Terrorist Firearms Attack. 1.2 The offer, which is now being considered by the Employee side, created additional budget pressures for RBFRS. 1.3 Although a formal response from the Employee side will not be received until the 24 th July 2017 the initial response has not been overly positive. 1.4 Should agreement not be reached through the NJC process the matter may be referred to ACAS for further consideration. 2. RECOMMENDATION 2.1 NOTE the report. 2.2 AGREE that if the 2% increase is agreed that funding from the Budget Contingency Reserve can be used to cover any in year shortfall in budget. 2.3 AGREE that Officers and the Budget Lead Member will provide an update at the annual planning workshop (11 th September 2017) including scenarios and options on how to manage the outcome of the negotiations, which should have concluded by then.

2 3. REPORT 3.1 The National Joint Council (NJC) is the agreed negotiating committee for operational staff. The NJC for Fire is made up of 14 Employer representatives i.e. Members of Fire Authorities from across the UK and 14 employee representatives i.e. Trade Union representatives, plus an independent Chairman. In July of each year the NJC, through a process of negotiation agrees what the annual pay increase should be for staff working on the National Joint Council For Local Authority Fire and Rescue Services Scheme of Conditions of Service Sixth Edition 2004 (updated 2009) also known as the Grey book. 3.2 Having received the pay claim from the Employee side (Appendix A) the NJC took the unusual step, of inviting all the Chairmen and Chief Fire Officers of UK Authorities, to a range of consultation events. The Chief Fire Officer and Cllr Iain McCracken attended on behalf of the Authority. At the meeting the position of Royal Berkshire s Chairman and Chief were presented as below: We are not unsympathetic to the pressures which 1% pay increases have created for our staff, particularly given the cost of housing and living within Berkshire The Medium Term Financial Plan of the Authority is based on the underpinning assumptions of a 1% pay increase and 1.99% precept increase until April Therefore any pay increase above 1% could not be met from existing budgets and would require either new funding or further reductions to expenditure. 3.3 The pay claim from the employee representatives indicated that without a satisfactory resolution to this pay claim it is unlikely that ongoing Emergency Medical Response (EMR) trials and Marauding Terrorist Firearms Attack (MTFA) work would continue to be supported. 3.4 Following the consultation the Employers side of the NJC made an offer (Appendix B) of 2% from the 1 st July 2017 with a further 3% from April 2018 subject to agreement of additional funding from Central Government. 3.5 The Fire Brigade s Union have responded to the offer as set out in Appendix C. The initial response was not overly positive but they have started a consultation with their members and will respond by the 24 th July If the offer is not accepted and agreement cannot be reached the matter will then be referred to ACAS for further consideration.

3 3.7 The additional 3% offer from April 2018, which is conditional of Central Government Funding, appears to have been made without the support of Central Government. There have been no indications, at this point that this additional funding would be provided. 3.8 If the Fire Brigade s Union do withdraw support from EMR and MTFA it could result in problems continuing the Co-Responding scheme at Wokingham. It is not clear yet if all staff would withdraw from the scheme but it would likely have a significant impact. It may also provide additional challenges in establishing the MTFA capability currently being planned. However, it is unlikely to have any impact on the Co-Responding schemes in operation at Hungerford or Wargarve. 3.9 Should the 2% award be agreed this will create a disparity in pay increases for our Grey Book staff (mainly operations) and our Green Book staff (mainly professional services). The authority may want to consider what they would like to do should such this be the outcome of the negotiations. 4. CONTRIBUTION TO STRATEGIC COMMITMENTS: 4.1 Commitment 4 We will seek opportunities to contribute to a broader safety, health and wellbeing agenda 4.2 Commitment 5 We will ensure that Royal Berkshire Fire and Rescue Service provides good value for money. 4.3 Commitment 6 We will work with Central Government to ensure a fair deal for Royal Berkshire. 5. FINANCIAL IMPLICATIONS: 5.1 As stated previously the current planning assumptions for the Authority s MTFP are that pay increases will be capped at 1% until April 2020 and that the Authority will raise the precept by the maximum allowed 1.99% each year until An additional 1% pay increase to 2% for all staff would mean the Authority would need to find an additional 250K per year. An additional 1% pay increase to 2% for Grey book staff only, would mean the Authority would need to find 190K per year. 5.3 Given that the current offer of 2% is from July 2017 the Authority would need to find an additional 142K per year. 5.4 All of the above costs are in addition to the 2.4 million pounds of savings already indentified in the Authority s MTFP.

4 6. LEGAL IMPLICATIONS: 6.1 None. 7. EQUALITY AND DIVERSITY IMPLICATIONS: 7.1 None. 8. RISK IMPLICATIONS: 8.1 To be added to the Corporate Risk register after 24 July CONSISTENCY WITH DUTY TO COLLABORATE: 9.1 N/A. 10. PRINCIPAL CONSULTATION: 10.1 Chief Fire Officer report author Head of Finance and Procurement was consulted during the preparation of this report. 11. BACKGROUND PAPERS: 11.1 None. 12. APPENDICES: 12.1 Pay Claim and Offer Appendix A and B 12.2 Employers proposals on pay Appendix C 13. CONTACT DETAILS: 13.1 Trevor Ferguson, Chief Fire Officer

5 APPENDIX A PAY CLAIM Our reference: MW/jh Letter sent by to Simon.Pannell@local.gov.uk and by first class post Mr S Pannell Principal Adviser (Employment & Negotiations) Workforce Team Local Government Association Layden House Turnmill Street London EC1M 5LG 24 May 2017 Dear Simon FIRE AND RESCUE SERVICE PAY AND CONDITIONS: FBU CLAIM The NJC is due to meet in York on 1 June. This is the meeting at which we have normally discussed pay, and you will be aware that our pay settlement date is 1 July. This year, this meeting follows a long discussion around the five workstreams which the NJC agreed to establish. We have found much of this dialogue very constructive, as both sides have sought to address the changing shape of our service and the direction it could take for the future. As part of this work, the NJC agreed to the EMR trials and employees in the relevant fire and rescue services have been undertaking this work for a considerable time. As you will be aware, the discussions around MTFA and emergency medical response (EMR) have been some of the more difficult. In relation to EMR, in addition to the issues identified in the University of Hertfordshire s Broadening Responsibilities report, we have set out in considerable detail our various safety and operational concerns, and these have started to be addressed through the technical working group. We have also set out our position that engagement in such new activity must be on a sustainable basis, including by means of addressing the issue of pay. We are now at the stage where this issue needs to be addressed at the NJC. As you will be aware, the EMR trials have been extended on an ad hoc basis, but there is no formal agreement on this. If the employers' side intends to seek

6 any extension beyond 1 June, we would expect that case to be made to us at the NJC, with the supporting arguments, including how the various concerns of the employees' side will be met. We draw your attention to the following: Firefighters pay has fallen significantly behind inflation, cutting real living standards. This has been exacerbated by increases to pension contributions and national insurance which have also hit the take-home pay of FBU members. There has already been a significant widening of the role, skills and expertise in our profession in all roles: wholetime, retained and control members, and including middle manager roles. There are other new skills and wider roles emerging such as EMR and MTFA. In light of the above, the FBU seeks a response from the employers on the issue of pay and conditions which addresses the following claim: 1. NJC pay scales need to address the loss of real earnings since the imposition of the pay cap/freeze in NJC pay scales need to take account of the additional work undertaken by employees since NJC pay scales need to address any broadening of the role maps or broadening of the work required of FBU members by their employer, which may include emerging potential new areas of work such as EMR and MTFA. 4. There is an urgent need to improve reward mechanisms for retained firefighters, including an increase in the retaining fee. 5. In order to ensure that NJC rates of pay do not fall behind in real and/or relative terms in the future and to provide stability in the sector alongside security for Grey Book personnel, there should be a pay formula. We trust you will give our views the necessary attention and we look forward to a positive response from you on 1 June. Yours sincerely MATT WRACK General Secretary cc: Gill Gittins Principal Negotiating Officer MW/jh

7 APPENDIX B Layden House, Turnmill St London, EC1M 5LG Telephone Employers Secretary, Simon Pannell FIRE & RESCUE SERVICES National Employers Matt Wrack General Secretary Fire Brigades Union Bradley House 68 Coombe Rd Kingston upon Thames Surrey, KT2 7AE 1 July 2017 Dear Matt, The Employers Side of the NJC has now had the opportunity to undertake three regional consultation meetings and to consider its response to your claim made at the start of June. We should state from the outset that the Employers Side shares your view that firefighters deserve to be paid more. Developing a longer term deal which builds upon the current position under the joint broadening the role of the firefighter commitment and delivers both greater flexibility within roles and increased pay levels will inevitably take time. It is important that both sides of the NJC remain fully engaged in that discussion and that work currently being undertaken through the trials continue. In order to support this, the Employers Side is making the following offer: (i) (ii) (iii) (iv) Stage 1 to immediately apply a 2.0% increase on basic pay across the board with effect from 1st July This includes CPD payments. This will allow time to reach a permanent agreement that can meet both parties aspirations. We expect to be able to reach a deal through the NJC which would: build upon the current broadening the role of firefighters negotiations; agree a permanent position; and include how the arrangements for the pay awards for 2018, 2019, and possibly 2020 will be staged fitting into an overall pay framework (including that relating to Retained Duty System firefighters). Stage 2 - Assuming the deal referred to in (ii) above is reached, we will apply a further 3% increase with effect from 1 st April 2018 as part of the 2017 settlement. However as you are aware fire and rescue services have had to deal with significantly reduced finances over recent years. Therefore, to be absolutely clear, in order to be able to apply the stage 2 increase it will also have to be subject to governments across the UK providing funding to enable us to do so.

8 (v) (vi) We would want to urgently discuss with all four UK governments as soon as possible, both jointly and where appropriate separately, how the service can be put on a firm financial footing to enable change to be achieved. The role of the service has evolved and needs to continue to evolve. In the interim, the current positions in respect of work being undertaken by employees through the trials and that related to MTFA would need to be maintained throughout the negotiation. Yours sincerely, Simon Pannell NJC Employers Side Secretary

9 APPENDIX C Circular: 2017HOC0342MW 4 July 2017 TO: All Members Dear Brother/Sister Employers proposals on pay The Executive Council met yesterday and received a proposal on pay from the fire service employers. It is important to note that this is the first proposal on pay within the public sector which does not apply a 1% cap to a proposal for an annual pay rise. The Executive Council acknowledged this movement. The Executive Council also recognised that the proposal opened the door to a further increase for 2017 and for the years beyond that - although no figures were attached in relation to 2018, 2019 and In the light of this, the Executive Council concluded that the proposal did not address the concerns which the union has raised through our claim. The issue of pay is one for FBU members to decide and, in accordance with our policy, there will now be a period of consultation with members. As part of this process, all branches should meet and should ensure consultation with all members. Brigade officials will ensure the returns from this discussion will be collated and reported to Regional Committees. The Executive Council will meet on 24 July to consider the outcome. The position and recommendation agreed by the Executive Council is set out below: 2017 Proposals on Pay The Executive Council has received the attached proposal from the employers on NJC pay and conditions. The policy of the FBU, agreed by Conference, is that this matter must now be subject to consultation with members. Members must be given 21 days to consider the employers proposal. The Executive Council will consider the result of this on 24 July in order to meet the 21 days requirement. Contd/2

10 APPENDIX C -2- The Executive Council has considerable concerns with the proposal from the employers and recommends to members that, in its current form, is not acceptable. The Executive Council: 1. Welcomes the acknowledgement by the fire service employers that firefighters deserve to be paid more and the departure from the previous approach to pay. 2. Welcomes the acceptance by the employers that a 1% pay offer is not viable and would not be acceptable to FBU members. 3. Welcomes the commitment from the employers to lobby governments across the UK for funding to ensure the viability of the fire and rescue service, including the new areas of work discussed by the National Joint Council. 4. Believes that the proposal presented so far does not adequately address the concerns of FBU members. 5. In particular, the idea of a payment for 2017 (the proposed Stage 2 payment) being delayed until April 2018 is not acceptable. The payment of any further increase for 2017 must be implemented earlier and during Equally, a delay in resolving other major issues including the pay settlements for 2018, 2019 and 2020 is not acceptable. The settlement of pay increases for 2018, 2019 and 2020 must also be agreed at a far earlier stage - and by no later than the end of November a date identified by the FBU re-call conference in March We seek the urgent response from the employers while our consultation with members takes place. As a part of this consultation we recommend to members that, if the concerns we have raised are not addressed, we will conclude that the employers do not wish to progress with the joint initiatives agreed through the NJC and the NJC trials will therefore cease. Yours fraternally Matt Wrack General Secretary Att. MW/sll