Public and Commercial Services Union

 

Keith Wylie
PCS
Ground Floor
34 Lisbon Street
LEEDS LS1 4LX

23 May 2001

I:\ERU\JULIAN\Pay2001\close2305.doc

PAY 2001: WITHOUT PREJUDICE OFFER - PAY BANDS AND MANAGEMENT PAY BANDS, ACCOUNTANTS AND AUDITORS

I am now able to set out below a formal 'without prejudice' offer for this year’s pay settlement for pay bands MPB1 - PB9 and Accountants and Auditors. The offer is made as a package. The contents of this offer should remain confidential to the negotiating teams and their respective executive bodies until a date agreed between us.

In constructing the remit, management have included in our considerations amongst other issues: the immediate business needs of the ES; the forthcoming creation of Jobcentre Plus and its initial Pathfinder Offices; Treasury public sector pay policy; prevailing economic conditions and the PCS pay claim of 27 March.

We make this offer on the condition that ES PCS agree to enter into joint discussions with management and the DSS PCS representatives on proposals to introduce Makinson incentive bonuses to staff in the Jobcentre Plus Pathfinder offices.

Since management are not, at this time, in a position to bring detailed proposals to you we accept your commitment is made on a ‘without prejudice’ basis.

On the same basis, this offer is made on the condition that you also agree to joint discussions on the establishment of new pay arrangements for Jobcentre Plus which will focus on the recommendations from the Makinson report.

Change In Settlement Date to 1 July
Management proposes to change the settlement date from 1 April to 1 July commencing with 1 July 2001. As a result, we will share the same settlement date as DSS which will mean that individuals working side by side with colleagues in Jobcentre Plus will be paid an award at the same time. For practical purposes, payment of awards can actually be made at the settlement date, as OPMs will have been posted by then.

Arrangements for the change in settlement date
To recompense staff for the change in the settlement date to 1 July, we propose to increase the value of awards this year. The increase in values will be paid and consolidated as part of a Progression Element.

OPM Distribution
We have already had much discussion about the use of OPMs in performance pay, and our respective views have been made clear. You have worked in partnership with Management during the exercise conducted by Deloitte and Touche to equality proof ES pay arrangements. Although we have yet to receive the report , the initial findings of this review have revealed no areas for concern about the structure of the pay arrangements. We are also engaged in Joint Working Groups looking at the application of the appraisal process.

Public Sector Pay Policy is absolutely clear that reward must be performance related, and this has been reinforced once again this year, during the process of remit clearance. This forms the basis for the offer.

We are able to make this offer and open formal discussion with you much earlier than has been enjoyed in previous years, and much earlier than the deadline of 31 May, by which all OPMs must be posted. Again this year, stringent efforts have been made to monitor the appraisal process and the indicative distribution is expected to be close to the expected outturn. Therefore to facilitate early discussion and enable pay cost modelling to be conducted we have again used a box mark distribution of 12% Box A, 80% Box B, 8 % Box C.

Qualifying Criteria
The basic qualifying criteria for an ES pay award are unchanged. The basic qualifying criteria are :
• to have achieved a Box C or higher OPM.
• to be employed by ES on 1 July 2001.

Arrangements will be made to ensure that permanent staff, who leave ES between 1 April 2001 and 1 July 2001, are paid any part of this pay award to which they would have been due, had the settlement date remained at 1st April.

Performance Awards
We propose a change this year to the structure and secondary qualifying criteria of the performance awards. Subject to the satisfaction of qualifying criteria, an individual may be entitled to an award made up of 2 elements depending on their status, period of service and OPM.

In order to maximise individual progression towards band maxima, we propose that the 2 elements of the award are a Progression element (PE); and a Performance Bonus Award (PBA). The total budget available for awards has been split as follows: Progression Element = 85%, PBA = 15%.

The PE will be consolidated up to band maxima, with any excess over maximum paid as a lump sum. The PBA will be fully non-consolidated. Both non-consolidated payments will be non-pensionable.

The criteria for payment of each element of the award is dependant on circumstances as set out in Annex 1. However in summary, those permanently employed by the ES on 1 July 2001 will receive at least the value of a Progression Element appropriate to the position at which their salary falls. Those employed temporarily by the ES on 1 July 2001 will receive the PBA if they have sufficient service.

Progression Element (PE)
The progression mechanism is intended to move people towards the maxima of their substantive pay ranges. This will apply to all permanent employees with a Box C OPM or better. The Progression Element will be a variable value dependant upon the individual’s position within their substantive pay band to the nearest position point in that pay range. Progression Elements will be higher for those in the lowest parts of the pay ranges. The Progression Element will be consolidated and pensionable up to the maximum.

We propose to pay the maximum Progression Element applicable to the 3rd part in each pay band to everyone whose salary falls within that part, regardless of their distance from the maximum. This will be paid up to the maximum, with any excess above maximum paid as a non-consolidated, non-pensionable lump sum.

As an effect of merging MPB 7 with MPB 6, some concerns have been expressed about undermining the value of Personal Advisers. Most of these Advisers fall in the 2nd quartile of the MPB 6 2000 pay range. In order to recognise their key role, and to avoid potential retention issues, Management proposes that the Progression Elements in the 1st and 2nd parts for the MPB 6 range are identical.

We also propose that the Progression Elements in the 1st and 2nd parts for the PB8 range are also identical.

Full details about the Progression Element are in Annex 1.

Performance Bonus Award (PBA).
The performance bonus award will be awarded on an equity share basis with 3 shares for a Box A, 2 for a Box B, 1 for a Box C and 0 for a box D. The PBA will be wholly non-consolidated, non-pensionable and payable as a lump sum. Payment will be subject to a qualifying period this year for temporary workers.

Proposed values of the awards are set out in tables Annex 2.

Order Of Calculation
The order of calculation of awards will be as follows:

1. Establish in which part of the 2000 pay range salary falls on 30 June 2001;

2. Pay PE in relation to that part as on tables Annex 2. Any excess over band maximum will be paid as a lump sum.

3. Where applicable minima will be increased, and individuals uplifted to the new minima

4. The PBA will be paid as a non-consolidated lump sum.

Minima and Maxima
The table attached (Annex 2) shows the proposed minima and maxima from 1 July 2001. It is not our intention to take any specific action to further shorten the majority of pay ranges or to reduce overlap. However we aim to ensure that pay band length is not increased excessively. Until the business needs created by Jobcentre Plus are fully understood, and work has been conducted to look at its relativity in the resource market place, it is not our intention to make major changes to pay range minima and maxima.

The exception is where the more immediate business of the Jobcentre Plus Pathfinder offices will benefit from changes to minima. In that respect we propose increases to some pay bands to move closer to the minima in equivalent grades in DSS and to address your concerns about low pay for PB8s and PB9s.

We do not propose to increase the minimum of MPB6 London , because it is already above that of DSS EOs in London.

We propose increases to maxima of 2.3% for PB9, PB8, MPB 6 and MPB 5, 1.5% for MPB 4,3,2 and 1 and Accountants and Auditors.

London Salaries
People in London will receive Progression Element values based on the London pay range. The same PBA values will be paid to staff on London and National pay bands. (Annex 2)

When the LRD report is published, Management will engage in further discussion about London Pay with PCS. This will inform the 2002 pay remit and future pay ranges for JC +.

Inner London Supplement
The Inner London Supplement (ILS) will be increased to £950.

Starting Pay on Entry
Management propose a change to the criteria for Starting Pay on Entry (SPOE) to a higher pay band for permanent progressions. We propose to add a new option to the level of entry based on 10% of existing salary, which is the same as current DSS arrangements. The new criteria for permanent progression will be the most favourable of:-

• either higher band minimum,
• 6% of Mid-Point of the higher pay band; or
• 10% of existing lower band salary.

all subject to the maximum of the higher pay band. This change will be effective for permanent progressions on or after 1 August 2001.

Starting pay for TRP will be unchanged. This will remain at band minimum or 6% of higher band mid-point.

Pay Related Allowances
Management proposes to increase all National pay related allowances by 2.5%.
This excludes the Recruitment and Retention Allowance currently being paid in some London offices on a pilot basis.

Annual Leave
Management proposes that the qualifying period for 30 days Annual Leave will be reduced from 14 to 12 years. This will take effect from 1 April 2002.

Payment Of Awards For Those On TRP
Last year, we agreed that no-one who undertook TRP on or after 1 April 2000 and before implementation of the pay award, received a reduced rate of TRP following the addition of a performance award to substantive salary. People retained the 1999 rate of TRP if that was more favourable than the 2000 rate. The same provision will apply this year. If the 2001 rate of TRP is less than the 2000 or retained 1999 rates, then the 2000 or 1999 rates can be retained until that period of TRP ends.

As Management propose to move the settlement date to 1 July 2001, and aim to make payment in the applicable month, there will be no need to undertake retrospective calculation of TRP or of substantive salary. Consequently, no technical overpayments or offsetting of performance awards, as have occurred in the past, are anticipated. New periods of TRP starting on or after 1 July 2001 will be paid at 2001 rates.

If for any reason, payment of awards cannot be made in July and some retrospection occurs, then for TRP undertaken on or after 1 July 2001 and before 1 September 2001, but calculated using 2000 rates, no recoveries will take place. Recalculations will be done where the 2001 rates are more favourable. New periods of TRP after 1 September 2001, will be paid at the applicable 2001 rate.

Temporary workers
Temporary workers employed during the year 2000/2001 will be entitled to a PBA at 1 July 2001 subject to having served 120 days in the year 1st April 2000 to 31 March 2001. All temporary workers, regardless of service, will continue to benefit from any agreed uplift to minima. Service on or after 1 April 2001 will not qualify for an award this year.

Temporary Workers who qualify for a PBA, who have been recruited through Temporary With a View to Permanent schemes, and subsequently take up permanent appointments resulting from the schemes, will have their salary uplifted by the value of the PE on the date they are made permanent.

Accountants and Auditors
The terms of this offer also apply to people in the Accountant, Auditor and Risk Consultant pay ranges. The full pay ranges will be used to establish the PE position points. Higher entry points will not be used for PE purposes. The Higher Entry Points will be increased by 2.5% in line with minima increases.

PBAs for Accountants, Auditors and Senior Accountants and Senior Auditors will be the same as for MPB3s and MPB1s, which are the equivalent Management Pay Bands for these grades . PBAs for Risk Consultants will be the same as MPB2s.

Special Bonus Scheme
Management acknowledge the concerns which include equality related issues, expressed by PCS about the Special Bonus Scheme. We will undertake an equality review of the Special Bonus Scheme using an external consultant. This will happen before Jobcentre Plus is fully introduced nationally, and will inform future consultation with the joint Trades Union as to whether such a Scheme has a place in Jobcentre Plus.

Other issues
Management has considered other possible elements of the package including working hours; maternity, paternity and parental leave; and is not proposing to introduce any further changes.

Payment of salaries
We aim to have awards paid with July salaries.

Pay circular
As last year Management will give PCS at least two days notice of the date PCS will receive the draft circular for comment. Management will give PCS at least 5 working days to clear the draft and undertake to allow sufficient time for ES consideration of the PCS position before publication of the circular.


Julian Baker
Head of Employee Relations

Attachments:
Annex 1 - criteria for payment of each element of the 2001 pay awards.
Annex 2 - pay award values by PBA and PE and pay ranges with effect from 1 July 2001.


PAY 2001 - ‘WITHOUT PREJUDICE’ OFFER ANNEX 1

The Two Elements of the 2001 ES Pay Award

Qualifying criteria for pay awards

The 2001 ES pay award will be paid as two separate elements with varying qualifying criteria for each element. The majority of people will qualify for both elements, however some people may qualify for one, both or none of the elements.

Progression Element (PE)

Qualifying Criteria

To qualify for a Progression Element (PE) individuals must:

• be employed by ES on 1 July 2001 (this includes people on career breaks or Unpaid leave);
• not have been awarded a Box D OPM for the reporting year 1 April 2000 to 31 March 2001; and
• have permanent employment status at 1 July 2001 including Fixed Term Appointments (FTA).

Subject to the above, permanent employees without OPMs will still get the PE, only Box D performers will be excluded.

The PE will not be paid to people with temporary status.

Temporary workers recruited through Temporary With A View to Permanent schemes who have qualified for a PBA , will have the PE paid on taking up a permanent appointment.

How the PE is Calculated
To determine in which part of the range the individual's pay lies, base salary at 30 June 2001 will be used.

The PE increase will be a variable amount which will be the amount required to move salary up to the next position point, limited to:

a) a maximum value for that part of the range; and
b) an underpinning minimum which will be the value of the maximum increase in the next part of the range above.

The PE values are calculated as a percentage of maxima for each pay band on the basis of variable percentages, fixed depending on budget and distribution in pay bands.

Those individuals falling in the 3rd part of the pay range will receive the maximum value for that part, subject to the maximum with any excess paid as a lump sum.

How the PE is Paid
The PE will be paid according to conditioned hours on 1 July 2001. For part-time workers, the value of the PE increase will be pro-rated according to part-time hours on 1 July 2001. For people absent on unpaid leave or career break on 1 July 2001 their salary will be progressed by the value of the PE when they return to work.

The PE payable will be based on and applied to the substantive pay band as at 1 July 2001; any time spent on TR to a higher pay band will not qualify for a progression element in a higher pay band.

Performance Bonus Award (PBA)

Qualifying Criteria
To qualify for a PBA individuals must:

• be employed by ES on 1 July 2001; and
• have earned and been awarded a Box C OPM or higher in the 2000/01 reporting year.
• have permanent employment status at 1 July 2001, or if temporary have at least 120 days service in the qualifying period

People without an OPM or with a Box D OPM will not get a PBA .

How the PBA will be calculated
The PBA will be paid according to 2000/01 box mark and substantive pay band on 1 July 2001 unless individuals have spent the majority of the report year on TR to one or more higher pay bands in which case they will receive the PBA applicable to the TR pay band.

How the PBA will be Paid
The PBA will be a fully non-consolidated and non-pensionable lump sum. For part-time workers it will be pro-rated according to their hours at 1 July 2001.

PBA For Temporary Staff
To qualify for a PBA, staff who are in a temporary pay band at 1 April 2000 will be required to have 120 days qualifying service (or a pro rata number of days for part time workers) as in last year’s pay settlement (Circ. 811/34 para 32 - 43).

Awards in higher pay bands
Qualifying criteria for awards in higher pay bands are unchanged from 1999. (Circ. 811/34 para 44 - 48.) In summary, awards will be paid appropriate to the pay bands in which individuals have spent the longest time during the report year end. However:

• individuals who have substantively progressed during the report period will receive an award applicable to the substantive pay band held on 1 July 2001, unless they would instead qualify for a higher award because of TR to a different pay band.;
• for anyone who has spent time in three or more pay bands, all higher pay band service will be aggregated. If the total higher pay bands service equates to the longest period, individuals will receive the award appropriate to the higher pay band in which they have spent the longest time; and,
• if periods spent in each of the higher pay bands are equal, individuals will receive the award appropriate to the highest pay band.

Note: The reporting period will remain as 1 April to 31 March with a settlement date of 1 July. This will also remain as the period for which working in a higher pay band and longest time will be assessed.

Only the PBA may be paid based on the higher pay band. The PE will be based only on the substantive pay band.


Min & Max

Payband ES 2000 Min % Increase Proposed Min ES 2000 Max % Increase Proposed Max

PB 9 National £9,180 1.00% £9,270 £11,320 2.30% £11,580
Temp PB9 National £9,180 1.00% £9,270 £11,320 2.30% £11,580
PB 8 National £10,410 5.90% £11,020 £13,640 2.30% £13,950
Temp PB8 National £10,410 5.90% £11,020 £13,640 2.30% £13,950
MPB6 National £14,390 2.60% £14,770 £18,330 2.30% £18,750
Temp MPB6 Nat £14,390 2.60% £14,770 £18,330 2.30% £18,750
MPB5 National £17,650 2.50% £18,090 £19,720 2.30% £20,170
MPB4 National £18,980 2.50% £19,450 £22,050 1.50% £22,380
MPB3 National £21,250 2.50% £21,780 £24,380 1.50% £24,750
MPB2 National £23,490 2.50% £24,080 £27,020 1.50% £27,430
MPB1 National £26,040 2.50% £26,690 £29,850 1.50% £30,300
Accountant Nat £24,250 2.50% £24,860 £27,900 1.50% £28,320
Senior Accountant National £29,070 2.50% £29,800 £34,100 1.50% £34,610
Risk Consultant National £24,990 2.50% £25,610 £31,231 1.50% £31,700
Auditor National £22,250 2.50% £22,810 £27,900 1.50% £28,320
Senior Auditor National £28,040 2.50% £28,740 £34,100 1.50% £34,610

Payband ES 2000 Min % Increase Proposed Min ES 2000 Max % Increase Proposed Max

PB 9 London £11,030 1.00% £11,140 £13,260 2.30% £13,560
Temp PB9 London £11,030 1.00% £11,140 £13,260 2.30% £13,560
PB 8 London £12,510 3.30% £12,920 £15,920 2.30% £16,290
Temp PB8 London £12,510 3.30% £12,920 £15,920 2.30% £16,290
MPB6 London £16,480 0.00% £16,480 £20,520 2.30% £20,990
Temp MPB6 London £16,480 0.00% £16,480 £20,520 2.30% £20,990
MPB5 London £19,430 2.50% £19,920 £21,930 2.30% £22,430
MPB4 London £20,810 2.50% £21,330 £23,990 1.50% £24,350
MPB3 London £23,150 2.50% £23,730 £26,460 1.50% £26,860
MPB2 London £25,530 2.50% £26,170 £29,170 1.50% £29,610
MPB1 London £28,140 2.50% £28,840 £32,120 1.50% £32,600
Accountant London £27,857 2.50% £28,550 £31,600 1.50% £32,070
Senior Accountant London £32,591 2.50% £33,410 £36,850 1.50% £37,400
Risk Consultant London £27,030 2.50% £27,710 £33,620 1.50% £34,120
Auditor London £24,850 2.50% £25,470 £29,385 1.50% £29,800
Sen Auditor London £30,140 2.50% £30,890 £36,570 1.50% £37,120


Payband PE 1 PE2 PE3 2000 Min 1st Point 2nd Point 2000 Max
PB 9 National £615 £586 £558 £9,180 £9,980 £10,680 £11,320
Temp PB9 National £0 £0 £0 £9,180 £9,980 £10,680 £11,320
PB 8 National £741 £741 £672 £10,410 £11,210 £12,010 £13,640
Temp PB8 National £0 £0 £0 £10,410 £11,210 £12,010 £13,640
MPB6 National £995 £995 £904 £14,390 £15,590 £16,790 £18,330
Temp MPB6 National £0 £0 £0 £14,390 £15,590 £16,790 £18,330
MPB5 National £1,071 £1,021 £972 £17,650 £18,722 £19,622 £19,720
MPB4 National £1,197 £1,142 £1,087 £18,980 £20,230 £21,430 £22,050
MPB3 National £1,324 £1,263 £1,202 £21,250 £22,650 £24,000 £24,380
MPB2 National £1,467 £1,400 £1,332 £23,490 £25,090 £26,590 £27,020
MPB1 National £1,621 £1,546 £1,472 £26,040 £27,740 £29,390 £29,850
Accountant National £1,515 £1,445 £1,375 £24,250 £25,800 £27,400 £27,900
Senior Accountant National £1,852 £1,766 £1,681 £29,070 £31,500 £33,500 £34,100
Risk Consultant National £1,696 £1,618 £1,540 £24,990 £27,500 £30,000 £31,231
Auditor National £1,515 £1,445 £1,375 £22,250 £24,500 £27,000 £27,900
Senior Auditor National £1,852 £1,766 £1,681 £28,040 £30,500 £33,000 £34,100

Payband PE 1 PE2 PE3 2000 Min 1st Point 2nd Point 2000 Max
PB 9 London £720 £687 £654 £11,030 £11,830 £12,580 £13,260
Temp PB9 London £0 £0 £0 £11,030 £11,830 £12,580 £13,260
PB 8 London £864 £864 £785 £12,510 £13,510 £14,510 £15,920
Temp PB8 London £0 £0 £0 £12,510 £13,510 £14,510 £15,920
MPB6 London £1,114 £1,114 £1,012 £16,480 £17,680 £18,880 £20,520
Temp MPB6 London £0 £0 £0 £16,480 £17,680 £18,880 £20,520
MPB5 London £1,191 £1,136 £1,081 £19,430 £20,630 £21,780 £21,930
MPB4 London £1,303 £1,243 £1,183 £20,810 £22,210 £23,510 £23,990
MPB3 London £1,437 £1,371 £1,304 £23,150 £24,650 £26,150 £26,460
MPB2 London £1,584 £1,511 £1,438 £25,530 £27,180 £28,780 £29,170
MPB1 London £1,744 £1,664 £1,584 £28,140 £29,940 £31,690 £32,120
Accountant London £1,716 £1,637 £1,558 £27,857 £29,800 £31,500 £31,600
Senior Accountant London £2,001 £1,909 £1,817 £32,591 £34,800 £36,750 £36,850
Risk Consultant London £1,826 £1,742 £1,657 £27,030 £30,000 £32,500 £33,620
Auditor London £1,596 £1,522 £1,449 £24,850 £26,900 £28,700 £31,600
Senior Auditor Lon £1,986 £1,894 £1,803 £30,140 £33,000 £35,500 £36,850



Payband Box A Box B Box C
PB 9 National £155 £103 £52
Temp PB9 National £155 £103 £52
PB 8 National £182 £121 £61
Temp PB8 National £182 £121 £61
MPB6 National £247 £165 £82
Temp MPB6 National £247 £165 £82
MPB5 National £283 £188 £94
MPB4 National £310 £207 £103
MPB3 National £345 £230 £115
MPB2 National £382 £255 £127
MPB1 National £423 £282 £141
Accountant National £345 £230 £115
Senior Accountant National £423 £282 £141
Risk Consultant National £382 £255 £127
Auditor National £345 £230 £115
Senior Auditor National £423 £282 £141

Payband Box A Box B Box C
PB 9 London £155 £103 £52
Temp PB9 London £155 £103 £52
PB 8 London £182 £121 £61
Temp PB8 London £182 £121 £61
MPB6 London £247 £165 £82
Temp MPB6 London £247 £165 £82
MPB5 London £283 £188 £94
MPB4 London £310 £207 £103
MPB3 London £345 £230 £115
MPB2 London £382 £255 £127
MPB1 London £423 £282 £141
Accountant London £345 £230 £115
Senior Accountant London £423 £282 £141
Risk Consultant London £382 £255 £127
Auditor London £345 £230 £115
Senior Auditor London £423 £282 £141


Wendy Jones FDA
Keith Wylie PCS
Phil Carpenter IPMS



PAY 2001: WITHOUT PREJUDICE OFFER - SENIOR MANAGEMENT PAY BANDS

I am now able to set out below a formal 'without prejudice' offer for this year’s pay settlement for Senior Management Pay Bands. The offer is made as a package. The contents of this offer should remain confidential to the negotiating teams and their respective executive bodies until a date agreed between us.

In constructing the remit, management have included in our considerations amongst other issues: the immediate business needs of the ES; the forthcoming creation of Jobcentre Plus and its initial Pathfinder Offices; Treasury public sector pay policy; prevailing economic conditions and representation from the Consortium.

Change In Settlement Date to 1 July
Management proposes to change the settlement date from 1 April to 1 July commencing with 1 July 2001. As a result, we will share the same settlement date as DSS which will mean that individuals working side by side with colleagues in Jobcentre Plus will be paid an award at the same time. For practical purposes, payment of awards can actually be made at the settlement date, as OPMs will have been posted by then.

Arrangements for the change in settlement date
To recompense staff for the change in the settlement date to 1 July, we propose to increase the value of awards this year. The increase in values will be paid and consolidated as part of a Progression Element.

OPM Distribution
Public Sector Pay Policy is absolutely clear that reward must be performance related, and this has been reinforced once again this year, during the process of remit clearance. This forms the basis for the offer.

We are able to make this offer and open formal discussion with you much earlier that has been enjoyed in previous years. Again this year, stringent efforts have been made to monitor the appraisal process and the indicative distribution is expected to be close to the expected outturn. Therefore to facilitate early discussion and enable pay cost modelling to be conducted we have again used a box mark distribution of 12% Box A, 80% Box B, 8 % Box C.

Qualifying Criteria
The basic qualifying criteria for an ES pay award are unchanged. The basic qualifying criteria are :

• to have achieved a Box C or higher OPM.
• to be employed by ES on 1 July 2001.

Arrangements will be made to ensure that permanent staff, who leave ES between 1 April 2001 and 1 July 2001, are paid any part of this pay award to which they would have been due, had the settlement date remained at 1 April.

Performance Awards
We propose a change this year to the structure and secondary qualifying criteria of the performance awards. Subject to the satisfaction of qualifying criteria, an individual may be entitled to an award made up of 2 elements depending on their status, period of service and OPM.

In order to maximise individual progression towards band maxima, we propose that the 2 elements of the award are a Progression element (PE); and a Performance Bonus Award (PBA). The total budget available for awards has been split as follows: Progression Element = 85%, PBA = 15%.

The PE will be consolidated up to band maxima, with any excess over maximum paid as a lump sum. The PBA will be fully non-consolidated. Both non-consolidated payments will be non-pensionable.

The criteria for payment of each element of the award is dependant on circumstances as set out in Annex 1. However in summary, those permanently employed by the ES on 1 July 2001 will receive at least the value of a Progression Element appropriate to the position at which their salary falls.

Progression Element (PE)
The progression mechanism is intended to move people towards the maxima of their substantive pay ranges. This will apply to all permanent employees with a Box C OPM or better. The Progression Element will be a variable value dependant upon the individual’s position within their substantive pay band to the nearest position point in that pay range. Progression Elements will be higher for those in the lowest parts of the pay ranges. The Progression Element will be consolidated and pensionable up to the maximum.

We propose to pay the maximum Progression Element applicable to the 3rd part in each pay band to everyone whose salary falls within that part, regardless of their distance from the maximum. This will be paid up to the maximum, with any excess above maximum paid as a non-consolidated non-pensionable lump sum.

Full details about the Progression Element are in Annex 1.

Performance Bonus Award (PBA).
The performance bonus award will be awarded on an equity share basis with 3 shares for a Box A, 2 for a Box B, 1 for a Box C and 0 for a box D. The PBA will be wholly non-consolidated non-pensionable and payable as a lump sum.

Proposed values of the awards are set out in tables Annex 2.

Order Of Calculation
The order of calculation of awards will be as follows:

1. Establish in which part of the 2000 pay range salary falls on 30 June 2001;

2. Pay PE in relation to that part as on tables Annex 2. Any excess over band maximum will be paid as a lump sum.

3. Where applicable minima will be increased, and individuals uplifted to the new minima

4. The PBA will be paid as a non-consolidated lump sum.

Minima and Maxima
The table attached (Annex 2) shows the proposed minima and maxima from 1 July 2001. It is not our intention to take any specific action to further shorten the majority of pay ranges or to reduce overlap. However we aim to ensure that pay band length is not increased excessively. Until the business needs created by Jobcentre Plus are fully understood, and work has been conducted to look at its relativity in the resource market place, it is not our intention to make major changes to pay range minima and maxima.

London Salaries
People in London will receive Progression Element values based on the London pay range. The same PBA values will be paid to staff on London and National pay bands. (Annex 2)

When the LRD report is published, Management will engage in further discussion about London Pay with PCS/IPMS/FDA. This will inform the 2002 pay remit and future pay ranges for Jobcentre Plus.

Inner London Supplement
The Inner London Supplement (ILS) will be increased to £950.

Starting Pay on Entry
Management propose a change to the criteria for Starting Pay on Entry (SPOE) to a higher pay band for permanent progressions. We propose to add a new option to the levels of entry based on 10% of existing salary, which is the same as current DSS arrangements. The new criteria for permanent progression will be the most favourable of:-

• either higher band minimum
• 6% of mid-point of the higher pay band or;
• 10% of existing lower band salary

All subject to the maximum of the higher pay band. This change will be effective for permanent progression on or after 1 August 2001.

Starting pay for TRP will be unchanged. This will remain as band minima or 6% of the higher band mid point.

Pay Related Allowances
Management proposes to increase all applicable National pay related allowances by 2.5%.
This excludes the Recruitment and Retention Allowance currently being paid in some London offices on a pilot basis.

Payment Of Awards For Those On TRP
Last year, we agreed that no-one who undertook TRP on or after 1 April 2000 and before implementation of the pay award, received a reduced rate of TRP following the addition of a performance award to substantive salary. People retained the 1999 rate of TRP if that was more favourable than the 2000 rate. The same provision will apply this year. If the 2001 rate of TRP is less than the 2000 rate or retained 1999 rate , then the 2000 or 1999 rates can be retained until that period of TRP ends.

As Management propose to move the settlement date to 1 July 2001, and aim to make payment in the applicable month, there will be no need to undertake retrospective calculation of TRP or of substantive salary. Consequently, no technical overpayments or offsetting of performance awards, as have occurred in the past, are anticipated. New periods of TRP starting on or after 1 July 2001 will be paid at 2001 rates.

If for any reason, payment of awards cannot be made in July and some retrospection occurs, then for TRP undertaken on or after 1 July 2001 and before 1 September 2001, but calculated using 2000 rates, no recoveries will take place. Recalculations will be done where the 2001 rates are more favourable. New periods of TRP after 1 September 2001, will be paid at the applicable 2001 rate.

Special Bonus Scheme
Management acknowledge the concerns which include equality related issues, expressed by PCS/IPMS/FDA about the Special Bonus Scheme. We will undertake an equality review of the Special Bonus Scheme using as external consultant. This will happen before Jobcentre Plus is fully introduced nationally, and will inform future consultation with the joint Trades Union as to whether such a Scheme has a place in Jobcentre Plus.

Other issues
Management has considered other possible elements of the package including working hours; maternity, paternity and parental leave; and the Special Bonus scheme and is not proposing to introduce any further changes.

Payment of salaries
We aim to have awards paid with July salaries.

Pay circular
As last year Management will give the Consortium at least two days notice of the date the Consortium will receive the draft circular for comment. Management will give the Consortium at least 5 working days to clear the draft and undertake to allow sufficient time for ES consideration of the Consortium position before publication of the circular.


Julian Baker
Employee Relations

Attachments:
Annex 1 - criteria for payment of each element of the 2001 pay awards.
Annex 2 - pay award values by PBA and PE and pay ranges with effect from 1 July 2001.


PAY 2001 - ‘WITHOUT PREJUDICE’ OFFER ANNEX 1

The Two Elements of the 2001 ES Pay Award

Qualifying criteria for pay awards
The 2001 ES pay award will be paid as two separate elements with varying qualifying criteria for each element. The majority of people will qualify for both elements, however some people may qualify for one, both or none of the elements.

Progression Element (PE)

Qualifying Criteria
To qualify for a Progression Element (PE) individuals must:

• be employed by ES on 1 July 2001 (this includes people on career breaks or Unpaid leave);

• not have been awarded a Box D OPM for the reporting year 1 April 2000 to 31 March 2001; and

• have permanent employment status at 1 July 2001 including Fixed Term Appointments (FTA).

Subject to the above, permanent employees without OPMs will still get the PE, only Box D performers will be excluded.

How the PE is Calculated
To determine in which part of the range the individual's pay lies, base salary at 30 June 2001 will be used.

The PE increase will be a variable amount which will be the amount required to move salary up to the next position point, limited to:

a) a maximum value for that part of the range; and

b) an underpinning minimum which will be the value of the maximum increase in the next part of the range above.

The PE values are calculated as a percentage of maxima for each pay band on the basis of variable percentages, fixed depending on budget and distribution in pay bands.

Those individuals falling in the 3rd part of the pay range will receive the maximum value for that part, subject to the maximum with any excess paid as a lump sum.

How the PE is Paid
The PE will be paid according to conditioned hours on 1 July 2001. For part-time workers, the value of the PE increase will be pro-rated according to part-time hours on 1 July 2001. For people absent on unpaid leave or career break on 1 July 2001 their salary will be progressed by the value of the PE when they return to work.

The PE payable will be based on and applied to the substantive pay band as at 1 July 2001; any time spent on TR to a higher pay band will not qualify for a progression element in a higher pay band.

Performance Bonus Award (PBA)

Qualifying Criteria
To qualify for a PBA individuals must:

• be employed by ES on 1 July 2001; and
• have earned and been awarded a Box C OPM or higher in the 2000/01 reporting year.
• have permanent employment status at 1 July 2001,

People without an OPM or with a Box D OPM will not get a PBA .

How the PBA will be calculated
The PBA will be paid according to 2000/01 box mark and substantive pay band on 1 July 2001 unless individuals have spent the majority of the report year on TR to one or more higher pay bands in which case they will receive the PBA applicable to the TR pay band.

How the PBA will be Paid
The PBA will be a fully non-consolidated and non-pensionable lump sum. For part-time workers it will be pro-rated according to their hours at 1 July 2001.

Awards in higher pay bands
Qualifying criteria for awards in higher pay bands are unchanged from 1999. (Circ. 811/34 para 44 - 48.) In summary, awards will be paid appropriate to the pay bands in which individuals have spent the longest time during the report year end. However:

• individuals who have substantively progressed during the report period will receive an award applicable to the substantive pay band held on 1 July 2001, unless they would instead qualify for a higher award because of TR to a different pay band.;
• for anyone who has spent time in three or more pay bands, all higher pay band service will be aggregated. If the total higher pay bands service equates to the longest period, individuals will receive the award appropriate to the higher pay band in which they have spent the longest time; and,
• if periods spent in each of the higher pay bands are equal, individuals will receive the award appropriate to the highest pay band.

Note: The reporting period will remain as 1 April to 31 March with a settlement date of 1 July. This will also remain as the period for which working in a higher pay band and longest time will be assessed.

Only the PBA may be paid based on the higher pay band. The PE will be based only on the substantive pay band.
 

Payband ES 2000 Min % Increase Proposed Min ES 2000 Max % Increase Proposed Max
SMPB 1 National £41,160 2.5% £42,190 £53,410 2.3% £54,640
SMPB 2 National £33,690 2.5% £34,530 £43,510 2.3% £44,510
SMPB 3 National £28,770 2.5% £29,490 £35,000 2.3% £35,810
SMPB 1 London £43,940 2.5% £45,040 £56,620 2.3% £57,920
SMPB 2 London £36,300 2.5% £37,210 £46,550 2.3% £47,620
SMPB 3 London £30,990 2.5% £31,760 £37,660 2.3% £38,530

Payband PE 1 PE2 PE3
SMPB 1 National £2,900 £2,767 £2,633
SMPB 2 National £2,363 £2,254 £2,145
SMPB 3 National £1,901 £1,813 £1,726
SMPB 1 London £3,074 £2,933 £2,791
SMPB 2 London £2,528 £2,411 £2,295
SMPB 3 London £2,045 £1,951 £1,857

Payband Total Box A Total Box B Total Box C
SMPB 1 National £720 £480 £240
SMPB 2 National £588 £392 £196
SMPB 3 National £486 £324 £162
SMPB 1 London £720 £480 £240
SMPB 2 London £588 £392 £196
SMPB 3 London £486 £324 £162