Pay and Reward Reform in Local Government Jan Parkinson Managing Director, LGE

What is Local Government Employers? Part of the Local Government Association group of “central bodies” Negotiate pay and core conditions for most local government staff Work on behalf of local councils as employers on a range of issues including pensions and employment law However, local government has a highly localised pay structure with decisions on grading and pay progression made by individual councils

Current LGE activity Our role is to advise and encourage councils We are providing information on how to cut and control employment costs We are developing good practice around ensuring that employees stay engaged and committed despite job losses and negligible pay increases – including flexible benefits etc We are making strong arguments in favour of national collective bargaining as the best way to produce affordable, realistic pay deals with minimal industrial unrest

A few facts on the local government workforce 1.4 million employees in mainstream LG jobs 75% Female 56% Part-time (90% Female) 7.5% from minority ethnic groups 61% of employees on lowest 14 scale points, 10% on top 15 Recruitment difficulties in managerial and professional grades not lower end 31% of the workforce to retire in next decade 9% of the Local Government workforce have no qualifications at all, 15% have a qualification below level 2

From boom to bust 2008 – growth and investment for the future 2009 – recession and cost-cutting 2010 – beginning of long-term period of budget constraint

Strategy, what Strategy? We are having to behave in an entirely reactive way at the moment Is there really any place for strategic thinking? Of course, we need a clear vision of a redesigned local government workforce But local government has a longstanding culture that will take time – and investment – to change

Some of the challenges we face Reducing sickness absence Pensions costs and revaluation Pay levels in a tight financial climate Industrial Relations Skills shortages and skill levels Partnership working Equal pay costs Providing customer-centric services Workforce and succession planning A new, smaller workforce Having visionary leaders to drive change Linking pay to performance