Less than half of Birmingham staff sign new contracts by deadline as dismissal and re-engagement process kicks in
Less than half of Birmingham City Council’s employees have signed a new contract by an unofficial deadline set by the local authority as part of an overhaul of staff terms and conditions.
The proposed changes were agreed by Birmingham’s Cabinet in March this year, with the council saying at the time they were necessary to modernise its employment contract, increase staff flexibility and remove old fashioned conditions and working practices and allowances. The changes are also intended to contribute to the authority’s savings target.
The proposals – affecting all staff employed on NJC terms and conditions of employment – include:
- removal of core allowances such as alternating shift payment, irregular and unsocial hours payments, and weekend work enhancements. Mitigation arrangements for the lower paid – under which those in grades 1-4 will not lose more than 10% of their core salary and allowances – will be applied for a 12-month period
- removal of some local allowances and practices
- amended car allowances
- provision of free car parking only to approved car users
- introduction of broad job groups “to create a more flexible workforce”
- alteration of the qualifying hours for payment for night work, which will continue.
The deadline for returning the new contracts was set by Birmingham to ensure dismissal and re-engagement letters could be sent three months ahead of the implementation date at the end of October. Around 9,000 of the council’s almost 20,000 staff – or 45% – have signed.
A spokesman said: "Employees can accept their new contract in writing up until the new Birmingham Contract comes into effect on 1 November 2011.
"The council will assume that employees who have not accepted their new contract in writing, but continue to turn up to work and accept pay on and after 1 November, have accepted the contract."
Unions have warned of potential industrial action over pay cuts at the authority. However, they also welcomed a separate development where the council has asked Service Birmingham, its joint venture with Capita, not to offshore IT services to India.
Dave Prentis, UNISON General Secretary, said: “Birmingham has joined a long line of other councils, which have realised that outsourcing is not the best option. Off-shoring to India will not deliver the savings they are looking for and local taxpayers will pick up the bill.
“However, the council is still pushing ahead with massive cuts to jobs and pay, which will devastate local service and see low paid staff losing up to £6,000 a year. These heavy handed tactics will lead to more industrial action in the near future, unless the council comes up with a reasonable alternative.”
On the question of off-shoring, the Birmingham spokesman said: “We will discuss a number of practical issues with Service Birmingham this week and they in turn will be speaking to staff members. Until those discussions are concluded we will be making no further comment."
A Service Birmingham spokesman said: "Our client, Birmingham City Council is asking us to revisit contractual
commitments around off-shoring with a view to discontinuing the initiative. Clearly discussions around this issue are commercially confidential and we are working actively with council officials to come to an agreed position."
Philip Hoult
