States Treasury and Exchequer
Ministerial Decision Report
Contingency Funding for Manual Workers’ and Energy Recovery Facility Workers’ Pay Award
- Purpose of Report
To enable the Minister to approve the allocation of £1,892,500 from Central Contingencies to various departments as detailed below, to cover the 2019 costs associated with the 2018/19 Pay Award in respect of Manual Workers and Energy Recovery Facility Workers.
- Background
Funding provisions were made in the Medium Term Financial Plan Addition in the Central Contingency (Pay Provision) for anticipated pay awards across all pay groups.
Manual Workers and Energy Recovery Facility Workers
On 21st November 2018, the States Employment Board wrote to all employees to communicate the revised 2018/19 pay offers including that which had been made to Manual Workers and Energy Recovery Facility Workers. On 21st December 2018 this pay group accepted their revised pay offer of 4.5% in 2018 (consolidated) and 2.2% in 2019 (consolidated).
An accrual was made by departments at the end of 2018 for 2018 costs; MD-TR-2018-0141 and MD-TR-2018-0150 allocated the equivalent budget.
This decision allocates the recurrent impact of the 2018 award and funding for the 2019 award.
- Recommendation
The Minister is recommended to approve allocations from Central Contingencies to the following departments in 2019 to cover the recurring costs associated with the 2018/19 Pay Award in respect of Manual Workers and Energy Recovery Facility Workers:
- Reasons for Decision
Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.
The current Contingency Allocation Policy (published as R.112/2018) sets the requirement for all allocations from contingency over £50,000 to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval. The Board has recommended these requests for approval. The requests have also been recommended for approval by the Principal Accountable Officer and States Treasurer.
5. Resource Implications
Central Contingencies to decrease by £1,892,500 in 2019 and Departmental revenue heads of expenditure to increase by a total identical amount, as detailed in the table in the written report.
The recurring effect of these allocations will be reflected in the next Government Plan 2020-2023.
This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.
Report author : Head of Decision Support | Document date : 21st January 2019 |
Quality Assurance / Review: Director of Financial Planning and Performance | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2019-0008 - Contingency Funding for Manual Workers’ and Energy Recovery Facility Workers’ Pay Award |
MD sponsor : Treasurer of the States |