Agenda item

Sarah Messenger (Head of Workforce) introduced the report which updated on activity in the core workforce team work areas of: pay; negotiations; pensions; workforce strategy; and consultancy. In particular, she invited Members’ views on employment agencies and use of ‘umbrella companies. Jeff Huston (Head of Pensions) provided an update on the pensions elements of the report.

In the discussion that followed, Members made a number of comments, including:

·        Serious concerns were expressed at the financial pressures resulting from the ending of contracting out and the potential impact of new models of service delivery on Local Government Pensions Scheme (LGPS) costs.  In response to questions, it was noted the Government had indicated that the increase in National Insurance costs would not be offset by any additional funding for any type of employer. 

·        Whilst Members welcomed the opportunity to influence the Government’s proposals for delivering savings to manage down pension deficits, the Board felt that prescriptive pooling arrangements were counter to local determination.  Whilst there were examples of successful collective investment vehicles, Members felt there should be freedom for these decisions to be decided locally.  In discussing potential changes, suggestions to be taken into consideration included: scale; unitisation; benchmarking performance of asset pools; and reviewing LGPS governance arrangements.

·        The Board discussed employment agencies and use of ‘umbrella companies.  Whilst Members were not supportive of poor procurement practice, they felt the LGA was unable to issue direction on the issue due to the fact that the practice was legal.  It was suggested the LGA continue to encourage best procurement practice and actively lobby MPs to legislate to make the practice illegal.

Decisions

The Resources Board:

       i.          discussed and note the report; and

      ii.          agree not to issue a statement in the issues of good practice in procurement.