States Employment Board: combined Annual Report 2015/2016.

STATES OF JERSEY

STATES EMPLOYMENT BOARD: COMBINED ANNUAL REPORT 2015/2016

Presented to the States on 6th June 2017 by the States Employment Board

STATES GREFFE

2017  R.63

REPORT

1. The Constitution of the Board

1. The Board from 1st January 2015 until 31st December 2016 consisted of the following members –

1. Senator I.J. Gorst , Chief Minister (Chairman)
2. Senator A.K.F. Green, M.B.E.
3. Senator A.J.H. Maclean
4. Connétable J. Gallichan of St. Mary
5. Connétable M.P.S. Le Troquer of St. Martin .

During this period, B. Shears was appointed as Non-Executive Director and Adviser to the States Employment Board.

2. The States Greffe provides administrative support to the Board.

2. The number of meetings held during the year

2.1  In 2015, there were 24 meetings of the Board, one of which was conducted by e-mail. There were also 24 meetings of the Board in 2016, 5 of which were conducted by e-mail.

3. A summary of key matters considered by the Board in 2015

1. Public Sector Reform and Workforce Modernisation –

The Board gave continued attention to the employment considerations arising from  the  Reform  of  the  Public  Sector  and  the  Workforce  Modernisation programme.

1. The Board recognised the significant contribution made by the Trade Unions  and  Staff  Associations  in  engaging  with  the  Workforce Modernisation  programme,  which  had  seen  their  representatives working constructively with the Employer. The Board recognised the positive foundations for partnership working that had been laid by the Collective Bargaining Framework and the Joint Council for Public Sector Unions and Associations.
2. The Board considered regular update reports  regarding Workforce Modernisation, including proposals for the Reward Strategy for States employees  and  progress  on  Job Evaluation  and  the  Terms  and Conditions/Policy work-stream. The Board remained committed to the principles of fairness and equity that were being applied in the new Reward Framework.

2. The Board gave consideration to a number of issues regarding pay –

1. With  regard  to  the  2015  Pay  Negotiations,  the  Board  remained committed to maintaining dialogue with employee groups. The Board considered matters relating to budgetary arrangements for pay awards, given the constraints of the financial challenges facing the States.
2. The Board received reports and gave consideration to matters relating to the pay of doctors.

3. Pensions

1. The Board received reports on and considered a number of matters in relation  to:  Pensions,  Public  Employees  Contributory  Retirement Scheme ("PECRS") and the Jersey Teachers' Superannuation Fund ("JTSF") –

• General pension provisions
• Admitted Body Status applications
• Amendments to Regulations
• Actuarial valuations for both schemes.

2. In considering future pension proposals, the Board received regular updates  from  the  Treasurer  of  the  States,  the  Pensions  Project Director, and the Negotiator for pensions provisions on behalf of the Joint Negotiating Group.
3. The  Board  considered  a  number  of  proposals  for  new  pensions legislation and amendments to existing Regulations. These included –

• Draft Public Employees (Pension Scheme) Regulations and Draft  Public  Employees  (Pensions)  (Jersey)  Law  2014 (Appointed Day) Act 201-: update.
• Draft Public Employees (Pensions) (Jersey) Law 201-: Joint Uniformed  Services  Association  Claim  re  PECRS  final offer – presentation.

4. The Board agreed to the request of the Committee of Management to bring both the PECRS and the JTSF into line with the relevant income tax legislation.
5. The  Board  considered  proposals  for  the  Doctors'  Incapacity Retirement Framework.
6. The Board reviewed proposals for Ill-Health Retirement under the CARE scheme proposals.

4. Pay and Remuneration over £100,000 (P.59/2011)

Pursuant  to  the  adoption  by  the  States  Assembly,  on  8th  June  2011,  of P.59/2011, entitled "Salaries over £100,000: process for review and scrutiny", the Board received a number of applications for appointments to be made where the remuneration for the post attracted a salary of over £100,000. (The report on P.59 applications is appended to this document.)

5. Public Sector Salaries

The Board endorsed a report for presentation to the States Assembly entitled Remuneration of States Employees: 2014', which was incorporated into the States of Jersey Financial Report and Accounts 2015.

6. Jersey Appointments Commission

1. The  Board  reviewed  the  method  of  compensation  for  the Commissioners, with immediate effect for new Commissioners.
2. The Board received the Annual Report of the Commission and agreed that the Chief Minister should present the finalised report to the States Assembly.
3. The  Board  endorsed  the  appointment  of  Ms. G. Liew  as  a Commissioner.

7. Voluntary Release Schemes

1. The Board received approved and received regular updates on the 2015 Voluntary Release Scheme, being cognisant of the  need for savings.
2. The Board approved the opening of a further voluntary release scheme for 2016.

8. Memorandum of Understanding

With regard to the Memorandum of Understanding (an agreement to review persons excluded or suspended from duty as a result of potentially concurrent internal disciplinary and criminal investigatory procedures), the Board noted continued  use  of  this  forum  as  an  effective  and  appropriate  means  of reviewing and managing such cases.

9. Codes and Policies

The Board noted the review of a number of policy matters, including –

1. Draft Redundancy Policy and rates for redundancy
2. Voluntary Release Schemes.

4. A summary of key matters considered by the Board in 2016

1. Codes of Practice

The Board considered and approved the Codes of Practice which had been introduced in compliance with the Employment of States of Jersey Employees (Jersey)  Law  2005.  The  Board,  following  the  recommendations  of  the Comptroller and Auditor General, agreed that the Codes of Practice would form part of the States of Jersey corporate governance and risk structure. The following Codes of Practice were established and issued –

1. Recruitment and selection
2. Employee development
3. Health, safety and well-being
4. Employment Relations and engagement
5. Reward
6. Equalities and diversity
7. Terms and conditions of employment viii.  Performance management.

As the Codes are enshrined in law, there is now a legal requirement for senior officers to implement and comply with the Codes.

2. The  Board  established  a  Sub-Committee  for  organisational  change, recognising the unprecedented level of change occurring within the States of Jersey.  This  included  the  need  to  give  consideration  to  outsourcing,  and compulsory  and  voluntary  redundancy  programmes.  The  Sub-Committee membership comprised the current non-Ministerial members of the Board, plus 2 non-Ministerial States Members, Deputies T.A. Vallois and R. Labey , nominated by the Chief Minister.
3. Public Sector Reform and Workforce Modernisation

The Board gave continued attention to the employment considerations arising from  the  Reform  of  the  Public  Sector  and  the  Workforce  Modernisation programme.

1. The  Board  acknowledged  the  continued  engagement  and professionalism of the contribution made by the Trade Unions and Staff  Associations  with  regard  to  the  Workforce  Modernisation programme. They were appreciative of the way in which they worked constructively  with  the  Employer.  The  Board  acknowledged  the progress made through partnership working established through the Collective Bargaining Framework and the Joint Council for Public Sector Unions and Associations.
2. The  Board  received  regular  update  reports  regarding  Workforce Modernisation, including proposals for both the Executive Workforce and  the  general  workforce  modernisation  affecting  Civil  Servants, Manual Workers, Nurses and other related pay-groups. The Board were pleased to note that principles of fairness and equity were key factors in the development of the new Reward Framework.

3. The Board also agreed and recommended to the Council of Ministers a revised mandate for Workforce Modernisation.
4. The Board were briefed on the outline timelines for the Uniformed Services Workforce Modernisation Review.

4. Pay

The Board gave consideration to a number of issues regarding pay.

1. With regard to the 2015 Pay Negotiations (which continued to be a matter for  discussion in 2016),  the  Board remained  committed  to maintaining  dialogue  with  employee  groups  during  further negotiations. The Board acknowledged that the funding arrangements for pay awards were set by the Medium Term Financial Plan and that these remained unchanged.
2. The Board received further updates on the pay negotiations which further included discussion on pay for 2016. The Board sought to communicate the position on pay with all employees.
3. The Board received reports and gave consideration to matters relating to the pay of doctors.

5. Pensions

1. The Board received reports on and considered a number of matters in relation  to  Pensions,  PECRS,  JTSF  and  the  Public  Employees' Pension Scheme ("PEPS") –

• General Pension provisions
• Appointment of the Admitted Employer Representative for PEPS
• Appointment to the Board of Management: Representative for JTSF
• Amendments to Regulations and Orders
• Appointment of Actuaries for PECRS, JTSF and PEPS
• Ill-health Retirement Appeals process (PECRS).

2. In considering future pension proposals, the Board received regular updates  from  the  Treasurer  of  the  States,  the  Pensions  Project Director, and the Negotiator for pensions provisions on behalf of the Joint Negotiating Group.
3. The  Board  considered  a  number  of  proposals  for  new  pensions legislation and amendments to existing Regulations. These included –

• PECRS: transfers out
• Draft  PEPS  Regulations  and  Appointed  Day  Act:  CARE Scheme – Fire and Rescue Service
• JTSF – amendments to Orders.

6. Pay and Remuneration over £100,000 (P.59/2011)

Pursuant  to  the  adoption  by  the  States  Assembly,  on  8th  June  2011,  of P.59/2011, entitled "Salaries over £100,000: process for review and scrutiny", the Board received a number of applications for appointments to be made where the remuneration for the post attracted a salary of over £100,000. (The report on P.59 applications is appended to this document.)

7. Public Sector Salaries

The Board endorsed a report for presentation to the States Assembly entitled Remuneration of States Employees: 2015', which was incorporated into the States of Jersey Financial Report and Accounts 2016.

8. Jersey Appointments Commission

1. The Board received the Annual Report of the Commission and agreed that the Chief Minister should present the finalised report to the States Assembly.
2. The Board endorsed the re-appointment of Professor E. Sallis as a Commissioner.
3. The  Board  agreed  the  drafting  of  the  Jersey  Appointments Commission's:  Draft  Employment  of  States  of  Jersey  Employees (Amendment No. 8) (Jersey) Regulations 201-; and also gave their approval  to  lodge  au Greffe the  Draft  Appointments  Commission (Miscellaneous Amendments) (Jersey) Law 201-.
4. The  Board approved  the Guidelines  for the  recruitment of Senior States Employees, appointees and members of independent bodies.

9. Health and Safety

The Board received a report on an investigation into an accident which had taken place at the Health and Social Services Department, and noted the action taken.

10. Travel and Expenses

The Board received reports regarding travel and expenses of officers in the States of Jersey and noted that appropriate action was taken.

11. Redundancy Programme

The  Board  received  a  report  on  the  2016  Redundancy  programme  for Voluntary and Compulsory Redundancy of employees. The Board requested that  the  scheme  remain  open  in  order  to  support  further  organisational changes.

5. Miscellaneous matters

5.1  The  Board  considered  a  number  of  miscellaneous  matters,  including  the following –

1. Succession planning for the post of Head of the Public Service: Chief Executive Officer
2. Staff retirements and extensions to contracts
3. Report on management training
4. Arrangements for Liberation Day
5. Funding of redundancy payments
6. Information Services transformation
7. Various employment matters.

6. Key manpower Statistics

6.1  Attached at Appendix 1 are key manpower statistics for 2015 and 2016.

APPENDIX 1 Key Manpower Statistics

Headcount (the number of people actually in post as at 31st December 2015):

Changes to internal HR Reporting parameters will now include staff covering periods of absence, as well as the following departments –

Jersey Car Parks

Jersey Fleet Management

Non-Ministerial SFB – Overseas Aid

States Assembly.

Assumptions:

All figures have come from the central HRIS (Human Resources Information System); the above figures do not include the following departments –

Jersey Ports

Housing.

The above departments are not included as they have now incorporated into private companies.

"Licensed" category employees (the number of employees, as at 31st December 2015, with a licensed' category housing licence (previously "JJ")):

Non-locally  qualified  registered  employees  (the  number  of  employees  as  at 31st December 2016,  non-locally  qualified  under  the  Control  of  Housing  and Work (Jersey) Law 2012:

68 or 1.0% of the reported Headcount above. Sickness Absence 2015

Attrition (Turnover) 2015

(The movement out of established posts)

Headcount (the number of people actually in post as at 31st December 2016):

Changes to internal HR Reporting parameters will now include staff covering periods of absence, as well as the following departments –

Jersey Car Parks

Jersey Fleet Management

Non-Ministerial SFB – Overseas Aid

States Assembly.

Assumptions:

All figures have come from the central HRIS (Human Resources Information System); the above figures do not include the following departments –

Jersey Ports

Housing.

The above departments are not included as they have now incorporated into private companies.

"Licensed" category employees (the number of employees, as at 31st December 2016, with a licensed' category housing licence (previously "JJ")):

Non-locally  qualified  registered  employees  (the  number  of  employees  as  at 31st December 2016,  non-locally  qualified  under  the  Control  of  Housing  and Work (Jersey) Law 2012:

Sickness Absence 2016

Attrition (Turnover) 2016

(The movement out of established posts)

APPENDIX 2

STATES EMPLOYMENT BOARD P.59/2011: REPORT FOR STATES MEMBERS

Background

The P.59 process has now been in place since June 2011, following the adoption by the  States,  on  8th  June  2011,  of  Proposition  P.59/2011,  entitled  "Salaries  over £100,000:  process  for  review  and  scrutiny".  This  resulted  in  the  approval  and reporting of all posts at Civil Service Grade 15 equivalent and above which are being replaced, or where there is a significant change to an existing senior post that fits into this category.

Formal approval for P.59 requests from departments must be granted by the SEB or by delegated authority from the Chief Executive. Where recruitment to a post is necessary this cannot be undertaken until approval is given.

Where  appropriate,  the  Jersey  Appointments  Commission  is  involved  in  the recruitment to these posts once approval has been given. The SEB has been mindful of the need to ensure that adequate provision is made for succession planning when giving approval to applications.

A full job description is required to support each P.59 submission, together with a person specification, organisation chart and a current job evaluation. Salary data, including any benchmarking data, is provided to ensure informed approval is made by the SEB.

The SEB has been keen to ensure that wherever possible, appointments to posts are drawn from the local market.

Activity Report: January – December 2015

During this period, a total of 15 applications under P.59/2011 were submitted to the SEB  for  their  consideration.  (See  attached  table  for  reference  and  detail.)  All applications were approved and none were refused. Seven applications were approved by the Chief Executive under delegated authority from the SEB; 12 were for existing posts.

An  application  for  3  new  posts  was  considered,  2  within  the  Chief  Minister's Department  and  one  for  a  Hospital  Consultant  in  Health  and  Social  Services. Two applications for existing posts were for extensions to existing contracts, and one was for an existing post whose job content had been revised.

A comparison table of application made in in previous years (2011–2015) is included for comparison. There is a rise in applications (5) from 2014 (9).

The rationale for payment in all cases was based on current job evaluation, relevant benchmarking information, and prevailing market forces.

An analysis of all applications made under P.59/2011 is used to inform work on succession planning, senior manager compensation, performance management, and retention and recruitment planning.

Activity Report: January – December 2016

During this period, a total of 11 applications under P.59/2011 were submitted to the SEB  for  their  consideration.  (See  attached  table  for  reference  and  detail.)  All applications were approved and none were refused. Five applications were approved by the Chief Executive under delegated authority from the SEB; all of these were for existing posts.

One application for a new post was considered, which was a consultant in Health and Social Services. A total of 7 applications were from Health and Social Services, and 6 of these were for consultant posts. Two applications were received from the Law Officers'  Department,  one  of  which  was  for  a  short-term  contract  post.  Two applications were received from the Chief Minister's Department, one of which was for the post of Chief Executive Officer.

A comparison table of applications made in in previous years (2011–2016) is included for comparison. There was a drop in applications from 15 in 2015 to 11 in 2016.

The rationale for payment in all cases was based on current job evaluation, relevant benchmarking information, and prevailing market forces.

An analysis of all applications made under P.59/2011 is used to inform work on succession planning, senior manager  compensation, performance  management and retention and recruitment planning.

APPENDIX 2 (Cont'd.)

P.59 APPLICATIONS January – December 2015

APPENDIX 2 (Cont'd.)

P.59 APPLICATIONS January – December 2016

18

APPENDIX 2 (Cont'd.)

Number of P.59 Applications by Year

R.63/2017