Executive and Senior Manager Pay Arrangements

1. Executive and Senior ManagerPay Arrangements Glasgow and LanarkshireHealth Service Branches

2. Context • NHS MEL (2000) 25 • Executive Managers Review 2005 • NHS HDL (2006) 23 • NHS HDL (2006) 59 • Briefing meeting for NHS Boards of Tuesday, 10 July 2007 • NHS CEL (2007) 4

3. NHS MEL (2000) 25 • New pay arrangements for senior managers employed by Trusts, Health Boards, and other NHS employing authorities within Scotland • Senior managers pay and terms and conditions of service brought under Ministerial Direction • Introduction of guaranteed progression through pay subject to acceptable performance

4. Executive Managers Review 2005 • Dissolution of Trusts and the formation of bigger units with a need to reflect and reward these new job weights and sizes • UK Pay Modernisation • Overlapping AfC pay scales with senior manager pay rates and who should be in each cohort.

5. Executive Managers Review 2005 • Recognition that Scottish pay rates were uncompetitive with the NHS in England • National contracts and a national performance management system to support a more corporate NHS Scotland

6. NHS HDL (2006) 23 • New pay arrangements and model contract for a New Executive Management Cohort (of around 300) • Arrangements within HDL agreed by Scottish Executive Management Remuneration Sub-Group

7. NHS HDL (2006) 23 • Performance arrangements based on a five point rating and with a new National Performance Management Committee • First pay for performance from 1 October 2006 • Change from 8 to 9 pay ranges with set 3.5% spine points

8. NHS HDL (2006) 23 Pay on performance as follows (inflation to be determined by Ministers): Unacceptable: no increase, (0%, reduction in real pay terms) Incomplete: inflation uplift only Complete: inflation uplift plus a consolidated increment Superior: inflation uplift, plus consolidated increment plus non consolidated bonus increment Outstanding: inflation uplift plus consolidated increment plus two non consolidated bonus increments

9. NHS HDL (2006) 59 • A redefinition of the Executive Cohort and the creation of a Senior Management Cohort • Creation of a National Evaluation Committee • Again arrangements within the HDL agreed by Scottish Executive Management Remuneration Sub-Group • Application of pay arrangements for new cohorts as set out in NHS HDL (2006) 23

10. NHS CEL (2007) 4 • Amendment of arrangement set out in HDL (2006) 23 and HDL (2006) 59 • Dissolution of incremental spine points within pay band • An extension of 1.75% to the minimum and maximum of the pay ranges

11. NHS CEL (2007) 4 Consolidated performance related pay increase within the pay range as of 1 October 2006 as follows: Unacceptable Nil Incomplete 1.75% Fully Acceptable 4.5% Superior 4.5% Outstanding 4.5%

12. NHS CEL (2007) 4 Non consolidated performance related pay increase as of 1 October 2006 as follows: Unacceptable Nil Incomplete Nil Fully Acceptable Nil Superior 2.75% Outstanding 5.5%

13. Summing up Effective date for the 2006-07 award confirmed as 1 October 2006 Unique among NHS staff a wait of 18 month for a pay increase for 2006-07 Prior to NHS CEL (2007) 4, two HDLs announced a pay award of inflation plus 3.5% increment for satisfactory performance and a further 3.5% non consolidated increment for performance above satisfactory

14. Summing up Increments for senior managers now to be determined by Scottish Ministers and for 2006-07 these are to be set at 2.5% as opposed to 3.5% (AfC staff incremental gain of 4%) Inflation award of 1.75% for 2006-07 lower than any other staff group within the NHS Why did it only become apparent in August 2007 that limitations on public sector pay policy would be an obstacle to delivering the commitments set out in the two HDLs of 2006

15. Discussion What current steps have been taken by the Union to date Options The way forward