Agenda item

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The Head of Business Change presented a report proposing changes to employment policies affecting payments and benefits (essential car user allowances, the payment of professional fees and the introduction of car parking charges) for Council employees in order to achieve the savings target set for the salaries budget.  The effects of the proposals were set out in the report, which also contained a full impact assessment.

Negotiations with recognised trade unions had taken place between November 2012 and January 2013 and the final proposals had been discussed at a meeting with the trade unions on 22 January 2013.  It was noted that the trade unions were not minded to accept the proposals.  The trade unions accepted that management had undertaken minimal consultation on the proposals and the trade unions would be balloting their members for their views.

In answer to Members’ questions the Chief Executive and the Head of Business Change provided information, as summarised below:

·         The proposed changes were not contractual ones;

·         The removal of essential car users’ allowance would achieve the savings required to the staff budget in 2013/14;

·         Discussions would continue in 2013/14 regarding the introduction of car parking charges.  The charges currently proposed provided discounted parking for employees;

·         There had been minimal feedback on the proposal to remove the payment of professional fees for employees.  Some local authorities had already taken this action and there had been no resulting impact on those local authorities.  If employees paid their own professional fees they could claim this against tax;

·         Essential car users would be re-designated as casual users who were required to have their cars available for work.  They would continue to receive mileage allowances, which would be paid at the APAX rates, i.e. actual reimbursement of miles travelled without tax being required to be paid on the mileage.  Lump sum payments for cars are believed to have been introduced around 1948, when few people had cars but were now considered to be an anachronism.  Few concerns had been raised on this issue at the current time;

·         The provision of electric cars for Council use had been considered but was not a feasible option at this time.  The situation would continue to be looked into;

·         Management had sought to produce proposals which would have as little financial impact as possible on employees and there would be tax advantages for some employees as set out above.

RESOLVED:

1.    That the removal of the Essential Car User allowance payment for all employees be approved.  Employees who receive this allowance would receive 3 months’ notice of its withdrawal as stated in their statement of particulars, with notice being given on the 1 February 2013.

2.    That the removal of the payment of Professional Fees for all employees, to be introduced from 1 April 2014. be approved.

3.    That it be noted that further work will be undertaken with regard to the introduction of a car parking rate for all staff during 2013/14 with the aim of introducing this from 1 April 2014