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DVLA Final Pay Offer

Please find below the final pay offer from DVLA management.

Without prejudice
 

Dear Sian


DVLA 2009 pay offer for staff below the Senior Civil Service


1. Following our meeting of 15 September and subsequent correspondence, below are the full details of the Agency’s best and final pay offer for 2009. This offer applies to all Agency staff below the Senior Civil Service. The offer covers a 12 month period from 1 August 2009 to 31 July 2010.
Background

DVLA's pay system


2. As you will know, in 2001 we agreed a programme of major changes to the Agency’s pay and grading structures and systems which resulted in a new pay structure being fully implemented in August 2005. Some of the benefits of the current system are:-

a. significant improvements to progression arrangements with minimum progression from the bottom to the top of the pay range varying from just 2 years for Pay Bands 1 and 2 to 5 years for grade 7s to Grade 6 Directors;

b. introduction of pay ranges that do not overlap;

c. consolidation of London Weighting and Local Pay Additions into the pay ranges;

d. IIP allowances consolidated at the top of the Pay Band 1 and 2 pay ranges which benefited all in the former AA and AO grades;

e. introduction of a non consolidated element providing a substantial pot for distribution each year; based on performance;

f. choice in how the non consolidated performance payment is made;

g. inclusion of the non consolidated performance element in an individual’s "best of final three years" pension calculations.

3. The restructuring was introduced to achieve some fundamental aims:-

a. fair and transparent pay systems which are based on contribution and provide real incentive to improve performance;

b. pay equality through faster progression;

c. aligning pay rates to the market;

d. addressing recruitment and retention difficulties.

4. The agency would like to build on what it has achieved with some further structural changes which are detailed in the offer below.

Departmental and Treasury Clearance of 2009 Remit

5. You will be well aware that the Government has this year laid down particularly strict criteria for Public Sector pay awards. This remit has been developed against the backdrop of the general economic climate and the specific issues that the Agency is facing in terms of affordability because of the downturn in the motor industry and the affect that has had on Agency income. The Agency has therefore been constrained in what can be offered. The offer therefore represents the highest end of affordability.

6. In putting together the pay offer we have continued to take account of areas you have identified as being of particular concern, in particular issues faced by lower paid staff.

The Offer
 

7. The offer is for an average increase in earnings for staff in DVLA below the Senior Civil Service of 1.99% of which 1.97% is wholly consolidated, and is made up of the following pay elements, all will be effective from 1 August 2009.
 

a. The removal of the bottom pay point for grades AO to Grade 6. For staff who are currently on the minimum they will move up to the new minimum. This will create an uplift of between;

• 1.4% and 5.0% to national minima,

• 1% and 4.6% to London minima.

b. An uplift of between 1% and 1.5% to national maxima.

c. An uplift of between 1% and 1.6% to London maxima.

d. The continuation of the current progression arrangements.

e. Distribution of 5% of the non consolidated pot in accordance with individual performance.

f. Revisions to pay points on the Medical Adviser scale of 1.3%.

g. The following allowances will cease;

• ADP machine operator
• ADP fast keying
• Typists/PS
• ADP IT
• ADP Project and Programme
• Procurement allowances other than the 13 key and designated posts identified.

For staff at grades AA and AO who are in receipt of these allowances, their pay will be protected for 3 years with effect from 1 August 2009 after which they will move onto mark time. Any new staff who join these areas will not receive any allowances.

For staff at grades EO and above who are in receipt of these allowances, they will move onto mark time with effect from 1 August 2009 but will receive a non consolidated, non pensionable compensatory payment, which will equal 75% of the pay award they would have received in 2009, 50% of the pay award they would have received in 2010 and 25% of the pay award they would have received in 2011. This accounts for the other 0.02% of the average earnings increase.

8. For new starters from 1 August 2009 onwards, they will receive their progression increase on the anniversary of their start date each year, until they reach the max.

9. The total amount for distribution will be 6.99%.

10. The offer also includes other non-pay elements as follows:

a. The addition of a long service award for staff with 45 years service. For 2009 this will be £550 and as with the 25 and 35 year award this will increase in line with the RPIX each year.

b. Staff will be able to take the current 2.5 days privilege leave at any time during the year, i.e. consolidated into annual leave (subject to seeking agreement from Cabinet Office to flexibility for the Queens Birthday privilege leave day).

c. We were unable to agree to your request to remove the restrictions on bonus payments for poor attendance. To clarify:

• staff who have had a 2nd stage warning during the 2008/09 reporting period can not achieve higher than a box 3 equivalent payment. They can receive less if the overall score equates to less than a box 3.

• staff who have had a 3rd stage warning during the 2008/09 reporting period will not receive a non-consolidated performance payment.

• staff who have had a 2nd or 3rd stage warning during the 2007/08 reporting period and whose attendance has not improved, will not receive a non-consolidated performance payment.

HR PARER will identify where cases of poor attendance have occurred and examine each case to ensure that the correct criteria is applied.

For the 2009 pay award only, in cases where poor attendance is not a factor and no sick warnings have occurred, but where scores equate to a box 4 marking, pay protection will apply and people will receive a non-consolidated payment based on their 2007/08 box mark.

d. The 1 year pay protection arrangements that were in place in the previous PDR system for staff moving directorates will no longer apply.

e. The effective date for calculations relating to the non-consolidated bonus will be moved from 31 July to 31 March. For example, a member of staff who has been working in the higher grade during the reporting year, but returns to the lower grade before 1 August, under current arrangements would receive their bonus payment in the lower grade. In the future if they were still in the higher grade at 31 March i.e. at the end of the reporting year, they will receive their bonus payment in the higher grade.

Conclusion
 

11. I believe that this year’s offer builds on the progress made in previous years to improve the Agency pay structure. During the transition period we were limited to the increases we could make to the target points. We have again looked at the top end of pay scales. In a climate of increasing downward pressure on public sector pay we have managed to improve all target points and improved the progression for Grades AO to Grade 6.

12. Our continued ability to avoid any capping arrangements at the top of the pay scale will also benefit your longer serving members, as will the increases to long service awards.

13. During our discussions, I stressed that the offer is at the limit of our remit. We have, however, made a small increase to the London element of the AA and AO London maxima from our original proposal to you.

14. We sent you the timescale to secure payment of the award in November salaries. You agreed you would be able to ballot members in that timeframe as well as seek the national PCS view of the offer. We want to issue our detailed pay circular as soon as possible and are aiming to issue it on Thursday 1 October 2009. I hope you will be in a position to launch your ballot at the same time or soon after. I will confirm the release date with you next week.

15. In conclusion this is the Agency’s best and final offer. In a difficult Public Sector pay round I believe it is a good offer and would encourage you to recommend its acceptance to your member.


Judith Smith