MD2505 Pay award for 2019-20 for the GLA’s Statutory Officers

Type of decision: 
Mayoral decision
Code: 
MD2505
Date signed: 
03 September 2019
Decision by: 
Sadiq Khan, Mayor of London

Executive summary

On 13 June Unison submitted a pay claim for GLA staff for the financial year 2019–20. In response,
mindful of settlements in local government, the Civil Service and across the GLA Group, as well as of affordability, the Chief Officer’s offer to Unison was a consolidated increase of 2.5% for grades 1 to 6 and of 2% for grades 7 and above. Unison accepted the offer on behalf of their members on 2 August.

The Mayor has already agreed (via MD2067) that the GLA staff pay award – 2% in this case – will be automatically applied to the 13 GLA staff appointed directly by the Mayor under section 67(1) of the GLA Act 1999 (as amended).

In accordance with the Senior Salaries Review Body’s (SSRB) recommendation adopted by the then Mayor (via MD493) and then Assembly in 2009, the local government pay settlement of 2% for 2019-20 will be automatically applied to the pay of the Mayor and Assembly Members.

All these changes will be implemented in the September payroll, backdated to 1 April 2019.

The pay of two of the GLA’s statutory officers – the Chief Officer (as Head of Paid Service) and the Executive Director of Resources (as Chief Finance Officer) – and the Monitoring Officer’s allowance currently awarded to the Executive Director of Communities & Intelligence is set by the Mayor and Assembly jointly. This decision form asks the Mayor to agree a pay award of 2% for 2019-20 for the Chief Officer and the Executive Director of Resources and for the Monitoring Officer allowance currently awarded to the Executive Director of Communities & Intelligence. The Assembly is due to consider this proposal at its meeting on 5 September 2019.

Decision

That the Mayor, noting that it is a joint decision with the Assembly, confirms that a pay award of 2% for 2019-20 should be made to the GLA’s Chief Officer and Executive Director of Resources, and that the Monitoring Officer allowance awarded to the Executive Director of Communities & Intelligence should also be increased by 2%.

Part 1: Non-confidential facts and advice

Introduction and background

The Chief Officer, following receipt of a pay claim from Unison on 13 June, has agreed that staff in the GLA should receive the following pay award:

• 2.5% for staff on Grades 1 to 6; and
• 2% for staff on Grades 7 and above.

The Unison pay claim contained several elements as follows:

Tapered claim:

• A consolidated increase of 5% for grades 1 to 6;
• A consolidated increase of 3.5% for grades 7 to 10; and
• A consolidated increase of 2.7 % for grades 11 and above.

Suggestions for an additional award for long-serving staff at the top of their pay grade:

• One-off cash bonus;
• 1% increase in salary;
• Additional annual leave;
• Long-service payment;
• Additional volunteering leave; and
• Better support to secure promotion.

Additional pay and conditions issues:

• Urgent review of pay and grading;
• Additional paid closure days over the Christmas period;
• Compensation for home working (utilities, travel, etc);
• Travel benefits similar to TfL colleagues;
• Ability to buy leave; and
• Additional pay for line management responsibilities.

The GLA allowed budget provision of 2% for the 2019–20 year amounting to £1.3m. The cost of the pay claim submitted by Unison would amount to an additional £1.0m a year over the budget provision for the tapered claim. If an additional 1% were to be awarded to staff at the top of their pay spine, this would amount to an additional £0.2m. The opportunity cost of one additional day’s annual leave would amount to an additional £0.3m, although the actual cost would be much lower as the cost only arises when leave is in some form “cashed in”. Therefore, the overall cost of the Unison claim is at least £1.2m over and above the existing budgetary provision.

The Chief Officer took account of the desirability of weighting the pay award towards the lowest grades, including a comparison with local government, central government and functional body pay settlements, and of affordability.

In response to the claim and being mindful of settlements in local government, the Civil Service and GLA group bodies and affordability, the Chief Officer’s offer to Unison was as follows:

• 2.5% for grades 1 to 6; and
• 2% for grades 7 and above.

The Chief Officer met Unison on 3 July to discuss the claim and to advise them of the pay offer. At the same meeting, the Chief Officer set out the GLA’s response to other aspects of the Unison pay claim.

The Mayor and Assembly were consulted on the Chief Officer’s proposal. The Assembly considered its response at the 16 July 2019 meeting of its GLA Oversight Committee.

The Chief Officer has confirmed that the pay award will be implemented in the September payroll and back dated to 1 April 2019.

The Mayor is entitled to appoint 13 members of staff under section 67(1) of the GLA Act 1999 (as amended) on terms and conditions, including pay, the Mayor thinks appropriate. The Mayor agreed (via MD2067) that the GLA staff pay award – 2% in this case – will be automatically applied to his 13 appointees.

The then Mayor (via MD493) and then Assembly agreed the SSRB’s recommendation in 2009 that pay increases for the Mayor and Assembly Members should mirror future local government pay awards. The 2% local government settlement will therefore be applied to the Mayor’s and Assembly Members’ pay for 2019-20.

Other considerations

The Mayor and Assembly must determine the pay award for the GLA’s statutory officers in line with Sections 72 and 127 of the GLA Act 1999 (as amended), noting that the Monitoring Officer role is in addition to an existing substantive role. The pay of that substantive role is settled through the staff pay award in the normal way. This decision therefore solely relates to the Chief Officer (the statutory Head of Paid Service function is intrinsic to that role) and the Executive Director of Resources (the statutory Chief Finance Officer function is intrinsic to that role), and the additional allowance awarded to the postholder of an existing substantive role for carrying out the duties of Monitoring Officer.

 

The table immediately below sets out GLA pay awards to GLA staff since 2011-12.

 

Year

GLA

Comment

NJC figure

Mayoral

appointments

2018-19

2% for all grades 1 to 15 and Executive Directors

A further 1% for GLA grades 1 to 6.

In response to a tapered claim from Unison.

2%

2%

2017-18

3% for Grades 1-5 

2% for grades 6-10

1% for Grades 11 +

In response to tapered claim from Unison

1%

1%

2016-17

 

2% for Grade 1-5

1.5% for Grade 6-8

1% for Grade 9-15

 

In response to tapered claim from Unison.

1%

1%

2014-15 &

2015-16

2.2%

15-month award covering 1 January 2015 to 31 March 2016

2.2% (1 January 2015 – 31 March 2016)

2.2%

2013-14

1% plus non-consolidated amounts

2.5% grades 1-4

2% grades 5-7

1.5% grades 8-10 & 1% grades 11+. 

N.B. only 1% added to pay scales with the remainder paid as a one-off payment.

1%

1%

2012-13

Nil

 

Nil

Nil

2011-12

4% for grade 1-3

0% otherwise

 

Nil

Nil

 

The pay award will be processed in the September 2019 payroll.

 

The Sponsoring Director for this decision is the Assistant Director of Finance & Governance as the Chief Officer and the Executive Director of Resources have a conflict of interest.
 

Financial comments

A 2% pay award for 2019-20 for the Mayor, Assembly Members and all GLA staff has been built into the GLA budget for 2019-20.

The award of 2.5% for Grades 1 to 6 will cost an additional £50,000 in 2019-20. That sum can be met from existing contingencies available within the GLA’s budget.

Once all parts of the pay award are agreed, the GLA budget will be updated accordingly.

The pay award will be processed in the September 2019 payroll.


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