CKWCB-12-201e_Cluster_RTSC_Minutes_19_July2012

Calderdale, Kirklees & Wakefield District Cluster Remuneration and Terms of Service Committee 19 July 2012 PRESENT: Ann Liston Roger Grasby

Non-Executive Director (Chair) Non Executive Director (by teleconference)

IN ATTENDANCE: Mike Potts June Goodson-Moore Ian Currell Laura Smith

Chief Executive Executive Director of Workforce and Corporate Development Cluster Director of Finance & Efficiency Assistant Director of Workforce (Secretary to the Committee)

RTSC 48/12: AP OLOGIES Mehboob Khan

Non-Executive Director

RTS C 49/12: DECLARATIONS OF INTERES T The Chief Executive declared an interest in items 51/12 and 52/12 as a VSM (not present for those items) The Cluster Director of Finance & Efficiency declared an interest in items 51/12 and 52/12 as a VSM (not present for those items) The Executive Director of Workforce & Corporate Development declared an interest in items 51/12 and 52/12 as a VSM for the Airedale, Bradford & Leeds Cluster.

RTSC 50/12: MINUTES The public and private minutes of the Cluster RTSC meeting held on 19 June 2012 were APPROVED as a correct record.

The public and private minutes of the Cluster RTSC meeting held on 3 July 2012 were APPROVED as a correct record.

It was AGREED that the notes of the Committee’s 5 July 2012 teleconference would be produced. In the notes of the Cluster RTSC meeting held on 3 July, it was AGREED to change the wording of “static” to “no annual cost of living uplift”; and to add “non-pensionable” to the sentence about bonus payments.

RTS C 51/12: MATTERS ARIS ING (RTSC 44/12: VSM PRP) A letter from the SHA has been received, requiring PCTs to consult with Directors in the event that a decision is made not to pay bonuses; asking them whether they are willing to forego their right to a bonus. This letter has gone to a number of PCTs who are not intending to award bonuses. This appears to be a different position from the SHA compared with previous years’ practice.

It was confirmed that all of the VSMs in the CKW Cluster who were ranked in the top 25% had agreed in conversation with the Chair / Chief Executive, to forego their bonus for 2011/12, in line with the general economic constraints and pay restraints in the public sector.

In letters to VSMs regarding their PRP it was AGREED that a statement would need to be included regarding eligibility and, where relevant, confirming that the VSM had agreed to forego their bonus payment.

It was AGREED that the Director of Workforce & Corporate Development would draft letters to the VSMs and respond to the SHA on behalf of the Cluster.

RTS C 52/12: VERY S ENIOR MANAGERS S UITABLE ALTERNATIVE EMP LOYMENT A paper on this item was presented to the Committee.

The SHA requires Very Senior Managers to be placed at risk of redundancy shortly.

It was further noted by the Committee that the organisation had an obligation to meet its responsibilities regarding custodianship of public finances. There is therefore a balance to be struck between the need for some VSMs to remain with the organisation until closure, and the need to encourage some VSMs to seek suitable alternative employment at the earliest opportunity.

It was confirmed that the VSMs within the Cluster directly receive all VSM vacancies issued by the NHS Commissioning Board, and that they were eligible to access vacancies via the NHS Jobs Regional Clearing House, which included vacancies from outside the region where the employing organisation had chosen to advertise them in all Regional Clearing Houses nationally.

The Committee AGREED that responsibility also rested with individuals at risk to seek suitable alternative employment themselves.

After full and careful consideration of the paper and verbal information presented, the Committee AGREED with the proposed process set out in the paper, specifically: •

A central record is kept of the VSM level posts that are identified in the new structures and that these are sent on global email to all VSM Executives as they arrive for information and consideration;

•

At the point at which the VSM Executives are advised that they are at risk of redundancy, an individual discussion is held with them and their line manager, with HR support, to explain and discuss the process;

•

Through the existing line management arrangements confirm that one to one discussions should be held monthly and those discussions recorded in regard to support and potential options for other employment;

•

The Chair and Chief Executive identify any VSM Executive who is required to continue to work in the cluster/PCTs for business continuity reasons and issue a comfort letter to delay the need for seeking alternative employment;

•

The Chief Executive and Executive Team meet to discuss the arrangements that need to be put in place.

RTS C 53/12: P EOP LE TRANS ITION UP DATE The Committee received a verbal update on this item.

CCG structures will be sent out for consultation by the end of July and are due to be finalised following consultation by the end of August.

At the 4 July meeting of the West Yorkshire Workforce Transition Group, it was provisionally agreed that pooling & matching would take place during the autumn, with the majority taking place during September.

If the CSS is able to finalise its structures by the end of August, the results of pooling and matching panels will all be able to be released to affected staff at the same time. In the event that the CSS structure is not finalised by the end of August, the results of CCG pooling & matching will be released to affected staff prior to the CSS pooling and matching results.

It was confirmed that the national guidance regarding pooling and matching, including information regarding the legal basis for transfer, remained in draft form. The most recent publication estimate provided by the Department of Health is by 22 July.

The Committee NOTED the information presented. A written update will be provided to the next meeting of the Committee.

RTS C 54/12: REDUNDANCY P ROVIS ION UP DATE The Committee received a verbal update on this item.

The Committee was reminded that a provision of £7.3m had been put into the accounts of 2011/12, for prospective redundancies in 2012/13. In the event that it became clear that this amount would change, or be carried to 2012/13, there was limited flexibility to accomplish this.

Based on last year’s accounts and forward projections; the CKW PCTs’ current cost per head of population is between £25 and £30, compared with a target of £25. To achieve the £25 is expected to come within the £7.3m provision described above.

Some PCT functions may not be included in the running costs.

By the end of July 2012 the CSS will have provided the first version of its structures, which should enable a more detailed estimate to be made regarding redundancy provision, when comparing those structures with the CCG structures and the existing workforce structures of the Cluster PCTs. The Committee was notified that a local Provider may also request some funding from the Cluster PCTs to finance some workforce change issues during 2012/13.

The Committee discussed the timing of any voluntary redundancy scheme. It was confirmed that the SHA advice was that no voluntary scheme should be released prior to pooling and matching taking place. The final version of the national guidance on pooling and matching may give further information about appropriate timing for a voluntary redundancy scheme.

It was AGREED that more detailed discussion about redundancy provision would take place in a further RTSC meeting, to be arranged for the end of August 2012.

RTS C 55/12: REMUNERATION OF CCG GOVERNING BODY MEMBERS The Committee received a paper on this item.

National guidance confirms the recommended remuneration levels for VSM appointments in CCGs. This has previously been circulated to Committee members.

National guidance combined with local recommendations have resulted in CCGs determining the remuneration for their lay members is likely to be set at the same level as current PCT Non Executive Director remuneration.

The Executive Director of Workforce & Corporate Development confirmed that she had met with all of the CCG Chairs in CKW regarding the HMRC issue over correct taxation; and that a further meeting was being sought with the National Commissioning Board. This issue concerns the remuneration and taxation of GPs on CCG Governing Bodies, and is being handled nationally.

The Committee NOTED the information presented and AGREED that if there was no progress on the HMRC issue by the end of August 2012, discussions would take place with a view to moving all independent GP contractors with a regular commitment to the CCG Governing Body on to the Payroll system with effect from October 2012.

RTS C 56/12: ANY OTHER BUS INES S No other business was raised.

RTS C 57/12: DATE & TIME OF NEXT MEETING

The next meeting of the RTSC will be scheduled to take place from 2.00pm until 3.30pm on Friday 31 August 2012, Ibbotson Room, Broad Lea House.

The subsequent scheduled meeting of the RTSC will be held on 26 September 2012 at 9.00am, at Broad Lea House.