Budget Variation (Employment Tribunal and Legal Fees)
Report by:
John Wilson, Personnel Officer
Ward Implications:
None specific. All of the Borough
1
Summary
1.1
Report seeks additional finance resources as a result of defending an application lodged by trades unions to an Employment Tribunal.
2
Recommendations
2.1
That Members approve the additional financial resources detailed in the report.
3
Report
3.1
The UNISON and GMB unions have separately lodged applications with the Employment Tribunal Offices, claiming the Council failed to consult correctly on the proposed restructure of its services that would potentially result in the redundancy of up to 37 posts. The unions were also seeking protective awards of 90 days salary for those staff whose posts were identified as redundant.
The Council is rigorously defending these claims through its solicitors.
3.2
Following Council’s decision on 9th August 2007 not to continue with the restructure as agreed in February 2007 and to look to bringing together the cash office and reception to a DDA compliant facility, it is hoped the trade unions will withdraw their applications to the Employment Tribunal. Whilst initial indications from local trades unions representatives are that this will be the case, at the time of writing, no confirmation of this has been received from their solicitors. It is therefore considered prudent to identify the potential financial implications for the Council and to seek a budget variation to cover these potential costs.
3.3
The actions of UNISON and GMB could not have been foreseen when the budget for the current year was agreed and no financial provision was made.
3.4
The costs incurred to date in preparatory work are £9,000. It is difficult to estimate precisely the costs should the Employment Tribunal take place, but indicative costs of an additional £25,000 are likely. Should the unions be successful in winning their claim at tribunal and having protective awards made on behalf of the 37staff who were potentially under threat of redundancy, the costs could be in the magnitude of £150,000.
The total budget variation sought is:
£
Solicitors Fees to date 9,000
Estimated Solicitor Fees 25,000
Potential Protective Award 150,000
________
£184,000
____________
If the trades unions withdraw their action the additional financial provision sought is £9,000.
4
Implications
4.1
Comments from the Council’s Section 151 Officer
To be reported at Committee.
4.2
Comments from the Council’s Monitoring Officer
No comments other than to endorse the relevant comments in the report
4.3
Comments from the Head of Paid Service
Implications are those set out within this report
4.4
Local Agenda 21
None
6.5
Equality
Equality is central to the Council’s constitution processes.
