New pay and reward principles for public service modernisation

DOCUMENT EXTRACT

PAY AND REWARD PRINCIPLES

The government and trade unions are committed to pay and workforce modernisation to deliver high quality and efficient public services, improve working lives and enhance the experience of users and local communities. Core elements of this modernisation agenda include a fair and equitable employment and reward package and flexible employment and working practices, underpinned by collective bargaining and supported by the close involvement of the workforce and trade unions.

The following framework sets out the key principles and parameters within which all public service pay and rewards systems should be developed with the workforce and trade unions. The principles, which focus on support for high quality jobs and a commitment to equal pay for work of equal value, will be widely communicated across public services and should form the basis of all pay review body and collective bargaining remits.

• Delivering public service improvement requires a productive workforce with the right skills in place. Investing in skills and development across the workforce will support the drive to improve services. The employment and reward package should be sufficient to recruit, retain and motivate this workforce. To achieve this, employers, working with trade unions, should articulate and promote all the benefits on offer as part of the employment and reward package. The reward strategy should be monitored, evaluated and kept up to date to ensure that it continues to meet high standards of fairness and be fit for purpose.
• It is unacceptable for women to be paid less than their male counterparts for work of equal value. All employers should be taking steps to ensure that they are complying with legislation on equal pay and where necessary have in place action plans to close any unjustifiable pay gaps. In order to achieve this, equal pay audits should be undertaken and where there is evidence of inequality in pay and conditions of employment, action should be taken to eliminate discrimination.
• Public service pensions are a key benefit of public service employment and should be celebrated as such. Changes in demographics, employment patterns, and the legal and regulatory framework require public service pension schemes to be modernised. Underlining the importance of a diverse workforce, there is scope to address how to develop flexible retirement options to meet the needs and aspirations of older workers and to make the most of their experience and expertise.
• Where in place national bargaining should be retained, with sufficient flexibility to allow response to local issues. In the civil service, the coherence agenda will improve the operation of pay and conditions arrangements within an overarching delegated framework.
• As part of a pay and reward package, provision for systems of pay incentives may be considered, taking account of potential advantages and disadvantages, and the development of alternative pay systems to achieve the same aims of service quality. In such cases, principles of equality, transparency and trade union involvement must be adopted and monitored consistent with the need to minimise bureaucracy, throughout the design and implementation of all pay systems.
• Against the background of the above principles, unions and employers commit to responding constructively and speedily to proposals to increase workplace flexibility, leading to improved public services and better working lives.