ALL STAFF BRIEFING

1

• ALL STAFF BRIEFING
• PAY FRAMEWORK AGREEMENT
• TUESDAY 6 MARCH 2007
• JO BRAKE
• DIRECTOR OF HUMAN RESOURCES
• JOHN DEERE
• PROJECT LEADER (REWARD)

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What is the Pay Framework Agreement?

• Originally arose from two Government enquiries in
  late 1990s (97 Dearing Committee, 99 Bett
  Report) which advised radical measures to
  modernise pay structures with HE.
• Implementation of the Pay Framework Agreement is
  viewed in the HE Sector as the most fundamental
  and most challenging change to employee terms and
  conditions for many years.
• Negotiated and agreed between seven national
  unions and the Employers (University and Colleges
  Employers Association)
• Implementation target date 1 August 2006

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Principles of Pay Framework

• Partnership working with unions.
• To be appropriate to the culture and objectives
  of the HE institution (flexibility).
• Equal pay for work of equal value principle.
• Link to national pay spine.

4
Features of Pay Framework Agreement

• One single 51 point pay spine.
• Desired implementation of 1 August 2006 (target
  date).
• Job evaluation / Role Analysis (HERA) across the
  organisation.
• Consider use of market supplements.
• Compulsory harmonisation of working hours for
  staff employed on defined working hours by 1
  August 2005 - Achieved.
• Equity of training and development opportunities
  for all.
• Implementation must have due regard to the
  resources available to the institution
  (particularly financial).
• Equal pay audit to measure effectiveness.

5
PFA Project at The University

• Project really started in Autumn 2004.
• Pay Framework Negotiating Group established
  between management and unions (UNISON and UCU).
• Project Manager appointed (fixed term) under the
  direction of the Director of HR.
• Project Plan agreed in partnership with unions.
• Agreed 37 hours per week for staff not on either
  senior management or academic contracts.
• Job evaluation team (3.8 WTE) employed on a fixed
  term to analyse posts.

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PFA Project at The University

• Higher Education Role Analysis (HERA) used as the
  job evaluation toolkit.
• Full pay modelling costed upon HERA outcomes
  creating the Universitys unique pay and grading
  structure.
• Anticipated costs of first year implementation is
  2.8 - funded by ring fenced RDS money.
• Full appeals procedure agreed.
• PFA was agreed in July 2006, but implementation
  delayed because of unions wanting further
  concessions.
• Phase 2 of PFA Project underway.

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Job Evaluation at The University

• Two year job evaluation project.
• Pilot job evaluation interviewed and analysed 103
  posts
• Critical sample list of posts agreed with the
  unions.
• Full diversity impact assessment carried out on
  original sample list.
• 606 actual interviews completed each requiring
  transcript of interview notes, verification by
  two management levels, scoring and moderating by
  the JE team.

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Job Evaluation at The University

• A robust quality assurance process was undertaken
  on the HERA scores.
• Scores were reviewed within the project team
  across Schools, Departments and similar types of
  roles.
• Deans and Heads of departments were given
  opportunity to review scores and provide feedback
  to JE team.
• Further 700 (and forever increasing!) matched
  roles to original interviewed list providing 1300
  roles.

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Appeals Process

• This has now been agreed with UCU and UNISON and
  covers 3 main areas
• Differences between role holders and managers
  regarding duties assigned to roles.
• Disputes regarding roles that in the view of role
  holders have been wrongly assessed as part of a
  group of roles on the assumption that duties are
  identical or very similar.
• Challenges raised by role holders regarding the
  grade finally assigned to a role.
• Informal and formal (grievance) processes.

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The University Pay Framework Agreement Key
Features

• New university pay and grading structure (60
  point scale) replacing existing structures.
• 11 grades, initially based on Appendix C.
• Job Evaluation Appeals procedure.
• Proposed one year interim arrangement for hourly
  paid academics.

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The University Pay Framework Key Features

• Integral staff development processes (including
  PDR).
• Mechanisms for progression between and within
  grades (including existing L to SL procedure).
• New method for pay progression within grades
  either by annual increments (not automatic) or
  accelerated increments.
• Use of discretionary progression (contribution
  points)
• Harmonised working week for all staff who work a
  defined working week 37 hours

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The University Pay Framework Key Features

• Commitment to equal pay for work of equal value.
• Assimilation dependent on how an individual's
  current substantive salary relates to the pay
  range for the grade of their new role as
  determined by HERA.

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Assimilation White Circling

• White Circling (59)
• Definition when current pay matches pay for
  grade.
• Action
• i) employee will be paid on point on new spine
  equal to or immediately above their current pay.

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White Circling

60
64,726
Spine points
7
White circling
6
5
10,425
1
15
Assimilation Green Circling

• Green Circling (34)
• Definition when current pay is lower than pay
  for grade
• Options
• employee immediately promoted to new higher grade
  but is paid on the minimum of new grade.
• or
• employees responsibilities may be reduced to
  appropriate to existing grade.
• or
• iii) By agreement employee moves to another post
  at the existing lower grade.

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Green Circling

60
64,726
Spine points
9
8
7
Green circling
6
10,425
1
17
Assimilation Red Circling

• Red Circling (7)
• Definition when current pay is higher than pay
  for grade.
• Options
• i) by agreement, duties and responsibilities of
  role be increased to be commensurate with
  existing grade.
• or
• By agreement, employee is offered training and
  development to maximise chances of securing
  higher graded role and thus meet higher duties
  and responsibilities.
• or
• iii) employees current salary is frozen and
  protected for four years (receiving no cost of
  living pay award or increments) at which time
  either new pay grade has caught up or salary
  drops to the highest point of the new lower grade
  (pension would be protected where applicable).

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Red Circling

60
64,726
Spine points
9
Red circling
8
7
6
10,425
1
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Phase II of the PFA

• Complete Appeals
• Progression Within and Between Grades
• Recruitment and retention premia (market
  supplements)
• Contribution points (discretionary progression up
  the incremental scale).
• Where do hourly paid, casual, visiting professors
  etc align on the pay structure?
• Harmonisation of terms and conditions including
  historical anomalies and other payments.
• Creation of a university career family framework.
• Full equal pay audit.

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What Happens Next?

• UNISON have agreed (end February 2007).
• Still awaiting national ratification from UCU.
• Chair of Governance, Administration and
  Employment Committee signs PFA on behalf of
  Governors together with management and trade
  union representatives.
• HR preparing letters for all staff and checking
  final assimilation spreadsheets (including
  anomalies).
• All staff briefings arranged (5/6/9 March 2007).
• All Deans / Directors met individually by HR to
  review final spreadsheets and identify red and
  green circled staff. Meetings to be scheduled to
  meet with red circled staff to discuss options
  immediately prior to implementation.
• All letters printed and staff moved onto new pay
  scale.

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Key Contacts

• Jo Brake, Director of Human Resources (2774)
• John Deere, Project Leader (Reward) (2786)
• Jo Brewin, Payroll Manager (2796)
• June Charlton, Project Administration (2774)

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• Any Questions?