# Pay, Terms & Conditions At Camden

Capital Ambition Pay Club December 2010
.. Or the story of the tortoise and the hare..

## We Wanted To Be Hares…

•
We wanted to achieve single status and modernisation at the same time (2007)
•
Modernisation:
- New pay scales - New grades - New PM scheme - New behavioural framework - New criteria for pay 
progression
- Segmentation - Streamlined and simplified 
T&Cs. 

## But It Didn'T Work …..

•
High level proposals to TUs in Feb 2007 -> point-blank opposition
•
Considered hard line options: took counsel opinion on possible routes
•
Took stock of internal appetites and our long term ethos
•
Decided to separate single status from modernisation and continue collective working on single status
•
Continued work on modernisation in the background 

## Single Status Outcome

Lucky white rabbit!

•
Reduced original scope of all NJC staff down to 680 directly affected
•
Used GLWC JE with TU agreement; older but less turbulence - very few people 
needed protection
•
Didn't pay any back pay but agreed a compensation payment matrix with the TUs - everyone 
got something
•
Agreed a composite rate with HMRC - everyone got something 
more
•
Used ACAS and COT3s to implement - everyone got 
protection
•
99.8% voluntary sign up within budget
•
No ET1's

## Modernisation - Phase 1

•
Longer timescale allowed greater 
clarification:
- more joined up and cohesive 
scheme
- clearer cultural messages - fixed more problems
•
Weren't in a position to roll out until April 2010 but needed to be 'in the bag' before May 2010
•
Went for the easy win - SM group:
- SM staff not part of NJC - SM pay was problematic 
anyway
- Pay freeze was the order of 
the day
- We needed to give a clear 
cultural message to this pivotal group 

## "Jaw, Jaw, Not War, War….."

•
TUs didn't like but didn't oppose
•
Disproportionate comms exercise
- 5 roadshows; Director-led - Comprehensive delegate pack - Individual Q&A via email
- BP presentations to 
directorate management teams
•
….. all for 180 (key) staff
•
A voluntary sign-up window
•
Some "sweeteners"
- Holiday - Salary increment
•
Produced 80%+ voluntary sign-up
Looks like a tortoise?

## The Sm Scheme

•
Open pay ranges
•
Performance now judged based on:
•
Pay determined by level in a new job family framework
- what you do (SMART 
objectives) 
•
Generic job profiles, Hay 
evaluated; 180 staff covered 
by 3 profiles
- how you do it (behavioural 
framework)
•
New PM scheme; 5 ratings; 
clearer about what "good" or 
"outstanding" looks like
•
Pay consists of consolidated 
and discretionary nonconsolidated amount
•
Pay movement determined by:
•
All increases based on range 
midpoint
- Position in the range
•
Distribution not forced for this 
group
- Performance rating

## Proposed Pay Matrix

Rating description
4th quartile
3rd quartile
2nd quartile
1st quartile
3.5% &
2.5% one off        
3% &
3% one off
Exceptional 
performance
High performance
3.5% & 1.5% one off
3% & 2% one off
| 2%               | 2%    | 2.5%   | 3%   |
|------------------|-------|--------|------|
| Good             |       |        |      |
| performance      |       |        |      |
| 1%               | 1%    | 1%     | 1%   |
| Needs to improve | 2     |        |      |
| 0%           |
|--------------|
| Poor         |
| performance  |
| 2.5% &       |
| 3.5% one off |
| 2% &         |
| 4% one off   |
| 2.5% &       |
| 2.5% one off |
| 2% &         |
| 3% one off   |

## The Sm Scheme (Cont'D)

•
New contract of employment:
- Contracted to job family and 
level
•
Checks and balances:
- Moderated objectives - "just in time" training
- Clarity that no additional 
payments will be made
- Increases based around the 
midpoint
- Removal of many R&R 
payments
- Accurate descriptions of 
poor/needs to improve/ good/excellent/outstanding 
•
New Pay Policy:
- Clarity about how to calculate 
part year or job change scenarios etc.
- End of year moderation of 
ratings
- Spread of distribution
•
New T&C's:
- Cap/freeze on long service 
leave
- Adjustment of pay matrix 
annually
•
New economic pressures:
- May need tweaked
- No leave carry-over - Enhanced time off for public 
duties; reduced special leave
- Longer working week (37 hours)

## And Now For The Rest ……

•
Revise pay, grades, terms and conditions of employment for remaining NJC staff
•
A challenging proposition:
- Not technically, but culturally - In terms of scope (around 
4,500 staff)
- Less leverage to encourage 
sign-up …or more?
- Sensitive in political and ER 
terms
- Positioning and timing are 
critical

## Proposed Changes To Pay & Grade

•
Pay progression based on contribution not tenure
•
New grading/pay structure developed  
•
Segmented approach: best fit to organisational level:
- Staff at SO & PO level will have open ranges; pay comprised of base 
pay plus discretionary variable element determined by an affordability matrix (ignoring position in range)
- Staff on Scale grades retain SCP approach - easier/clearer cultural 
message
- Pay spine may be smoothed to regularise increments - New grades will be applied attached to job family framework - Contribution recognised by either:
- Cash payment to recognise high performance or - Bar through which pay can't progress without sustained excellence

## Proposed Changes To T&C'S

•
Based on some key principles that will inform all subsequent decisions, e.g.:
- We will pay for disruption increasing the rate to match the level of 
disruption
- We will pay only once - no double counting
- No disruption; no premium
•
We offer and expect flexibility with no premium attached:
- Extension of working hours - Extension of "normal hours" - Overtime paid at plain time; none paid until 40 hours worked; thereafter 
probably at time x 1.5
- Use of TOIL encouraged (and properly managed)
•
Harmonisation of leave at 28 days annual leave for all staff
•
Cap/freeze on long service leave (cost and cultural message)
•
No change to sick pay

## Impact On Pay Bill

•
The proposed new scheme will allow costs to be taken out of the pay bill in three main ways:
- Pay & grade:
- Through better control of pay increases; now a variable amount, 
subject to an affordable maximum each year
- Through tighter control of grades and reduction in "grade creep". 
Over the medium term an element of "right-sizing" of jobs will take place
- Terms & Conditions:
- Through the removal of multiple and over-generous premia 
payments
- By reducing access to payments for overtime, disruption and antisocial hours
- Improving productivity:
- Capping/freezing long service leave - Increasing the working week

## Implementation

•
6-9 months development; 9 months roll out
•
Option taken will determine 
speed of savings, but
•
Direct correlation between 
speed and risk
•
Local and national pressures 
will play their part
•
Recent history should help us

## Questions?

lis.mccormick@camden.gov.uk
0207 974 7600
lis@mccormickandwood.co.uk
07736 726933