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1 |
Summary |
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The paper considers the remuneration arrangements for the Principal Officer team (Chief Officer, 2 x Deputy Chief Officers and Director of Corporate Services), the current national approach to pay for this group of staff and draws pay comparisons with similar size Fire and Rescue Services. It also details the on call arrangements for Principal Officers currently on trial and recommends the establishment of a mechanism to review the remuneration of the Principal Officer team, both now and for the future. |
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2 |
RecommendationError! Bookmark not defined.(s) |
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2.1 |
It is recommended that the Committee calls for a review of current local remuneration and conditions for the Principal Officer team, to be undertaken by a working group of members and officers. |
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3 |
Introduction Error! Bookmark not defined.and Background |
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3.1 |
Principal Officer pay and conditions is currently dealt with at a national level by the National Joint Council for Principal Fire Officers and is enshrined in `Gold Book' pay and conditions arrangements. This is separate negotiating machinery from that for firefighters (which in truth covers all roles up to and including Area Managers), these staff are conditioned to NJC conditions for firefighters (Grey Book). |
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3.2 |
In the last three years, Grey Book staff have seen pay increases of 4%, 7%, 4.2% and 3.4% as part of the modernisation of their working conditions. Principal Officer pay on the other hand has risen by 4%, 2.9% and 2.95% in the same period. There remains a pay award currently outstanding from 1 January 2006 with the national employers presently offering 2.4%. |
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3.3 |
In the last two years, national pay settlements have been confined to a `going rate' rise which reflects the Retail Price Index (RPI). Both National Joint Council circulars in May 2004 and October 2005, which confirmed the national settlement, have encouraged fire authorities to undertake local reviews where they have not done so in recent times. `As this year's settlement represents only a going rate rise and therefore does not take into account any conditions of service issues considered during this year's pay negotiations, authorities are reminded that the circular issued on 28th May 2004 encourages them to undertake local review of pay levels where they have not done so in recent years and where it is appropriate'. (October 2005 NJC Circular) |
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3.4 |
As a result, in the last two years, some 60% of Fire and Rescue Services have conducted local reviews which have led to supplements being paid above the going rate rise. In the last year alone in the South East, six of the nine Fire and Rescue Services have made additional payments. Of those that have not, one Service has made a non pensionable payment separate from basic salary. Only Hampshire and the Isle of Wight have not carried out reviews. Around the remainder of the country, of the seven Fire and Rescue Services of a comparable size to Hampshire, six have carried out local reviews and uplifted salaries. |
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3.5 |
The Fire Service has seen, over the last 3 years, immense change and an enormous expansion of the expectations placed upon it. The entire statutory basis of the industry has been radically altered with new statutory duties created. This has been accompanied by an overhaul of national pay and conditions. The emphasis is now on much greater local determination of what and how the service is provided (through the IRMP). This greater discretion means that senior managers, quite rightly, are expected to apply their professional judgement, both in terms of service delivered and best use of resources. Prescription has been replaced by an emphasis on sound managerial decision making, which effecting dramatic change has demanded clear and coherent leadership from the corporate team. |
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3.6 |
Clearly many different factors determine local pay levels and quite rightly, population is only one consideration. Increasingly, the total pay bill for the corporate team is taken into account, together with the more traditional factors of population, risk, transport infrastructure and size of budget. Below is detailed Fire and Rescue Services which represent comparable organisations. |
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Fire & Rescue Service Essex Hampshire Kent Lancashire Merseyside South Wales South Yorkshire Northern Ireland |
Governance CFA CFA CFA CFA FCDA CFA FCDA Unitary |
Population 1,630,000 1,675,100 1,599,900 1,429,212 1,364,000 1,435,000 1,272,609 1,702,800 |
Corporate Pay Bill £584,362 £405,662 £504,288 £565,369 £435,000 £610,839 £508,565 £353,488 |
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4 |
Report |
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4.1 |
Part of the senior manager review conducted last year (see report entitled Senior Management Review - Final Report, dated 8 September 2005) commenced the trial of a new on-call arrangement for Principal Officers. This revised operational rota has allowed Principal Officers more flexibility in terms of their movement out of the county in order that they can cope with increasing out of county obligations generated by regional and national commitments. |
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4.2 |
Demands on Principal Officers has grown in Hampshire, not only because of the massive change programme now being delivered, but also because of the stated commitment that Hampshire as a Service and Fire Authority should become more influential and visible on the national scene. Equally important, the arrangements have increased the resilience at strategic level by ensuring more senior officers are available for major incidents, both in the county and further a field. |
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4.3 |
The trial rota also reflects the reality that the Chief Officer is deemed as permanently available unless specifically stated as off duty. Similarly the DCOs are deemed as on either first or second call availability unless specifically on rostered leave. This ensures the Service remains on adequate level of resilience with only three Principal Officers. This trial has been operating since 1 July 2005 and appendix A provides a brief resume of findings to date. |
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4.4 |
Since March 2005, the Chief Officer's performance is formally appraised by senior elected members with key objectives for the year being set for the Chief Officer. Similarly, the Chief Officer appraises his direct reports (2 x Deputy Chief Officers and a Director of Corporate Services) as part of this performance management process. Introduction of a comprehensive performance development process throughout the whole organisation is now a key project within the Service's overall improvement plan. However, in the first instance, it was felt important that such appraisal arrangements be installed initially at the most senior levels. Appraisal systems such as the one applied to the Chief Officer and his senior team link very firmly personal development to business objectives. It may therefore be appropriate to consider the achievements of such objectives with any local remuneration arrangements. This would align with the increasing emphasis on performance management which the organisation is adopting. |
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4.5 |
Clearly the whole matter needs to be carefully considered, not only to ensure a fair and equitable review, but also to demonstrate a transparency/objectivity in the process. It is therefore recommended that a review working group is established of at least two elected members, an HR Advisor and a representative from the Association of Principal Fire Officers, the staff association for this employee group. It is proposed that in addition to considering current remuneration, the group consider a mechanism for future reviews given the increasing movement away from national to local pay settlements for senior public sector staff. |
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5 |
Contribution to Corporate Aims and Objectives |
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5.1 |
The Service and Authority have committed to becoming a top performing organisation with a strong regional and national reputation. A key element in the achievement of this is to have a clear pay and workforce strategy which links reward and performance. Maintaining appropriate and attractive reward packages for the Corporate Team is important to sustain and motivate the continuation of this progress. |
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Risk Analysis |
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6.1 |
The key risk is Hampshire Fire and Rescue Authority's failure to review local pay arrangements as recommended in national guidance. It would then fail to maintain comparability with other Services and hence become less attractive as an employer. |
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7 |
Resource Implications |
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7.1 |
Human Resources |
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Initially it is proposed that a working group of at least two elected members, an HR advisor and APFO representative. It is for the working group to set out is own timetable, but the expectation is for a report to be available by 18 August 2006. |
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7.2 |
Physical Resources |
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None specific. |
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7.3 |
Information and Communications Technology Resources |
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To be provided from existing resources. |
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7.4 |
Financial Implications |
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None relating to the review group, but the recommendation of their work may have financial implications. |
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8 |
Equality Impact Assessment |
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8.1 |
The proposals within this report are considered compatible with the provisions of the European Convention on Human Rights, the Human Rights Act 1998, and the Race Relations (Amendment) Act 2000. |
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9 |
Consultation |
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9.1 |
This will be discharged through a representative of APFO sitting on the review team. |
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10 |
Conclusion |
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10.1 |
An initial survey of comparable Fire and Rescue Services has revealed that the overall Principal Officer pay bill in Hampshire is significantly lower than other organisations. Additionally, Hampshire has yet to review its remuneration arrangements for these officers and therefore remains out of line with both others in the South East region and Services of a similar size. |
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10.2 |
Finally, the trial of a more flexible rota system for Principal Officers, which provides more flexibility and productivity is proving beneficial for the Service, but does extend these officers working hours. |
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10.3 |
In addition there has been substantial change in the responsibilities of and expectations for the Service and hence its leadership in recent times. Similarly this has led to the introduction of a revised personal performance management process for all staff including principal officers. This needs to be a factor when reviewing remuneration of the Services' most senior officers. |
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Background Information (Section 100D of Local Government Act 1972) |
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The following documents disclose the facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of the report: None Note: The list excludes: (1) published works; and (2) documents that disclose exempt or confidential information defined in the Act. |
