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WRITTEN QUESTION TO THE CHIEF MINISTER BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 1st MARCH 2011
Question
"Will the Chief Minister inform members what voluntary redundancy terms have been offered to public sector workers for 2012 and 2013 along with the terms that are on offer to the equivalent workforces in the UK and in Guernsey? Will he also state what terms will apply in the case of compulsory redundancies?
Will he confirm that the terms on offer locally are less than those available to UK and Guernsey workers and state whether this has arisen because we are in a worse economic and financial position than these two jurisdictions and, if not, what is the cause?
Will he also confirm that the target for redundancies over this period is 280 and if not, what is it? Will he further place this in the context of any overall target for job losses through non- replacement, outsourcing etc? What does he estimate will be the size of the total public sector workforce by 2014?
Will he also state whether there are any negotiations currently taking place over redundancies and if so in which sectors?"
Answer
- The terms agreed by the States Employment Board on 2nd February 2011 for Voluntary and Compulsory Redundancy are:-
2011 – 2012 Voluntary Redundancy terms
The revised VR terms, with immediate effect for 2011 and 2012 will be four weeks pay per year of completed continuous service, capped at 18 months pay. In addition the maximum salary for redundancy calculation purposes will be capped at grade 15/3 currently £83,018.
2011 – 2012 Compulsory Redundancy terms
The introduction of CR terms, with immediate effect for 2011 and 2012 will be three weeks pay per year of completed continuous service, capped at 12 months pay. In addition the maximum salary for redundancy calculation purposes will be capped at grade 15/3 currently £83,018.
2013 – Voluntary Redundancy terms
In 2013 VR terms will be three weeks pay per year of completed continuous service, capped at 18 months pay. In addition the maximum salary for redundancy calculation purposes will be capped at grade 15/3.
2013 – Compulsory Redundancy terms No change to 2012 terms.
- Clearly, in the UK public service, provision differs from service to service and organisation to organisation. For instance, the NHS and Local Government terms vary from the UK civil service redundancy terms. The recently revised Civil Service terms are as follows:
UK civil service voluntary redundancy
For each year of service one month's salary capped at 21 months pay
UK civil service compulsory redundancy
For each year of service one month's salary capped at 12 months pay.
Guernsey civil service redundancy policy is 5 weeks pay for every year of service up to a maximum of 20 years, i.e. 100 weeks.
The Jersey statutory arrangement is effective after 2 years service and allows for one week pay per year of service capped at the level of average earnings (currently £630 per week and reviewed annually).
The States Employment Board determined the new terms as it wished to more closely mirror the States provision to that provided by sizeable local companies within the Island. The previous terms were extremely generous and introduced at a time (mid 90s) when the financial climate was very different in Jersey. The terms had become out of kilter with other organisations and indeed the financial climate we now find ourselves in. Although not quite as generous as the UK or Guernsey Civil Service, the new terms are considered fair, reasonable and more affordable.
- There is no target for redundancies. The 2012 and 2013 CSR savings proposals identified 177 posts which may be lost if the schemes were to be implemented as then planned. However, all measures will be taken to minimise the number of compulsory redundancies by offering voluntary retirement, redeployment, etc. Similarly, there is no target for job losses through non-replacement, outsourcing etc. Non-replacement of vacant posts will be used to manage post losses where appropriate and some proposals may involve some kind of alternative service provision but this will be discussed with staff and unions at the appropriate time.
There are no current negotiations currently taking place over redundancies. There are a number of CSR proposals which means this situation may change over the course of the year.