The attached provides an update on the current position on Agenda for ChangeThe Department of Health's letter inviting expressions of interest in becoming an early implementer is the first significant activity that requires action within NHS Trusts. It is vital to note that no Trust can be an early implementer without the full support of the staffside. To All Health Branches And NHS Reps 3rd July 2002 Dear Colleagues NHS Pay Modernisation - Agenda for Change Update and Expressions of Interest in Early Implementation of the New NHS Pay System This letter gives an update on developments and in particular describes the process for applying to be an "Early Implementer" of the proposed new NHS Pay system. Management Side has tabled a proposal for a nine or ten grade structure for all staff (excluding Doctors and the most Senior Managers), but to be expressed as two separate but identical pay spines. They have also indicated they want the final system to include: A package for staff in high cost areas; Greater flexibility for high performing Trusts/Foundation Hospitals The consolidation of leads and allowances Phased assimilation; Flexibility on job/role design; Pay progression linked to competence; A 37.5 hour week; New unsocial hours arrangements; A partnership agreement on implementation
The Department of Health's letter inviting expressions of interest in becoming an early implementer is the first significant activity that requires action within NHS Trusts. It is vital to note that no Trust can be an early implementer without the full support of the staffside.
To All Health Branches And NHS Reps
3rd July 2002
Dear Colleagues
NHS Pay Modernisation - Agenda for Change Update and Expressions of Interest in Early Implementation of the New NHS Pay System
This letter gives an update on developments and in particular describes the process for applying to be an "Early Implementer" of the proposed new NHS Pay system.
Management Side has tabled a proposal for a nine or ten grade structure for all staff (excluding Doctors and the most Senior Managers), but to be expressed as two separate but identical pay spines.
They have also indicated they want the final system to include:
They would also offer a three-year pay deal on the same terms as that offered to NHS Consultants (10% over the three years).
It is impossible to say exactly what the proposals mean at this stage. We have no details of what is envisaged for staff in high cost areas, in relation to "high performing" Trusts or on phased assimilation. New proposals are anticipated on unsocial hours. The other issues have been raised in the past but remain to be negotiated. The Staff Side members of the Joint Secretaries Group have already made it clear that the point at which to discuss future pay increases is once we have negotiated a new system and not before.
Most significantly, we cannot form any judgements about what a new grading structure may mean for NHS staff until considerably more work had been done on job evaluation profiles since this will determine where staff fit in to the new system.
Work will go ahead urgently on all these issues over the next few weeks.
At the same time, the Department of Health has sent a letter (attached as Annex A) to the Chief Executives for all NHS organisations in England inviting expressions of interest in becoming "Early Implementers" of the proposed new NHS Pay System. Scotland, Wales and Northern Ireland are not involved in this process.
The purpose of "Early Implementers" is to test out the new system and learn lessons about the issues which arise when NHS organisations put the system in in-order to allow the system to be implemented across the whole of the NHS with the least possible disruption.
NHS organisations which want to be "Early Implementers" will need to put forward a case which is described in the letter itself and the annexes to it. Key points to be covered include:
The selection of "Early Implementers" will be done jointly by Department of Health, NHS Managers and NHS Trade Union representatives. Organisations chosen to be "Early Implementers" will be given support by members of the NHS Modernisation Agency's Best Practice Team and there will be additional support to ensure adequate time off facilities for local staff involvement in the implementation process.
Once "Early Implementers" have been selected and the proposed pay system has been published they will be able to start planning for implementation but they will not be allowed to bring the system in until the consultation process on the proposals have been completed and the new system has been finally agreed.
If you have any queries about anything in this letter or the attachments please contact the following by email: Barrie Brown - Barrie.Brown@amicus-m.org Colin Adkins - Colin.Adkins@amicus-m.org
Yours sincerely
ROGER SPILLER NATIONAL SECRETARY - HEALTH
Enc.
Annex A - Letter from Department of Health
2 JULY 2002 TO:CHIEF EXECUTIVES OF NHS TRUSTS IN ENGLAND CHIEF EXECUTIVES OF PRIMARY CARE TRUSTS IN ENGLAND CHIEF EXECUTIVES OF SOCIAL CARE TRUSTS IN ENGLAND CHIEF EXECUTIVES OF STRATEGIC HEALTH AUTHORITIES IN ENGLAND CHIEF EXECUTIVES OF SPECIAL HEALTH AUTHORITIES CHIEF EXECUTIVES OF BLOOD TRANSFUSION SERVICE CHIEF EXECUTIVE OF THE DENTAL PRACTICE BOARD CHIEF EXECUTIVE OF THE PUBLIC HEALTH LABORATORY SERVICE BOARD CHIEF EXECUTIVE OF PRESCRIPTION PRICING AUTHORITY
2 JULY 2002 TO:
CC:
Dear Chief Executive,
EXPRESSIONS OF INTEREST IN EARLY IMPLEMENTATION OF THE NEW NHS PAY SYSTEM (AGENDA FOR CHANGE)
As you know, negotiations on a new pay system for the NHS have been underway for some time and now appear to be approaching conclusion. In advance of an anticipated agreement, we are now proceeding to put in place plans for implementation.
Ministers are taking a keen, personal interest in effective implementation and have agreed that we should take a phased approach to the implementation of the new NHS Pay System but with a very clear indication that in time, all NHS organisations will be covered by the pay modernisation proposals. As the first part of the phasing, a number of NHS organisations will be chosen as 'Early Implementers', to test the new system and to have their progress monitored. Through monitoring progress and sharing lessons from early implementation, we will be able to establish best practice to inform the further roll out of the new pay system. The process for the selection and approval of Early Implementers has been discussed and agreed with the Staff Side and will be taken forward on a partnership basis.
Prior to a final agreement being reached in the negotiations, successful expressions of interest will be taken forward on a 'shadow' basis. Selected Early Implementers will be committing themselves to prepare and plan for implementation, with the final decision on going forward being made when a formal agreement has been reached and consultation is complete. In this way, preparation, discussion and consultation should be able to be carried out locally, without prejudice to any national negotiations and consultation arrangements.
If you wish to consider expressing an interest, a team from the Modernisation Agency will be available to give advice on how to approach this, together with staff side officials involved in the negotiations. An outline timetable is given below, although this is illustrative and may be subject to change:
I enclose an information pack of background material, which because of the continuing negotiations, cannot at this stage provide all the details of the potential content of a new pay system. We may therefore offer joint briefing sessions to those who are considering expressing an interest, dependant upon demand. Please contact Peter Smith, Operations Manager, Pay Modernisation Unit, at the address below if you wish to pursue this.
Pay modernisation was never an end in itself and to be successful, it must be able to deliver major benefits to patients, staff and employers. The agreed approach both locally and centrally, has been to deliver these benefits in partnership with staff organisations.
If you wish to take forward pay modernisation as an Early Implementer then you will need to prepare carefully and put forward a case based upon the attached Expressions of Interest document.
I attach an outline application form and guidance for expressions of interest and you should play close attention to some of the key criteria that we will be looking for in early implementers:
A comprehensive training and development programme will be put in place to support implementation. The Modernisation Agency will be creating a Best Practice Team to work with Early Implementers and then the rest of the service to support implementation. If successful in your application, the Agency will be allocating a member of the team to work with your staff (supported by funding for a local project team once the application has been formally approved). We anticipate that some key staff within Early Implementers may be seconded for some of their time into our team (with appropriate funding) to assist us in the rollout. This of course, will be done in full consultation with you. It is important that the lessons learnt during early implementation are utilised by the rest of the NHS to assist in successful implementation.
A joint Department of Health, NHS management and Trade Union group will be analysing the applications. If you do take forward an application the group may wish to return to you for further details and discussion.
Could you return your application to Ray Mailly, Head of Pay Modernisation, at the address below by Friday, 16th August at the latest. If you are unsuccessful in your expression of interest you will be given feedback and support to go forward on a different timetable. It is important that every employer prepares for the implementation of pay modernisation as soon as we reach an agreement.
If you have any enquiries regarding this letter and the attachments please contact Peter Smith, Operations Manager, on (0113) 254 5684 at the Modernisation Agency, Room 2N35D, Quarry House, Quarry Hill, Leeds LS2 7UE.
Andrew Foster, Director of Human Resources
ANNEX 1 - EXPRESSIONS OF INTEREST
The following is a format for completion for any NHS organisation or groups of organisations that wish to express an interest in becoming an early implementer. This should be forwarded to Ray Mailly, Head of Pay Modernisation Unit, Modernisation Agency who will then forward to the relevant people for analysis and decision. Whatever the decision made, feedback will be given to enable you to progress with pay modernisation at a future date. Please complete each section and/or follow a similar format in sending in your plan. You may add attachments and supporting information to support your application. It would be helpful if you could keep this to a maximum of 8 sides. Section 1 - Commitment 1. In what way have you involved Trade Unions and staff in your preparation and implementation for pay modernisation? Could you supply examples of this? Where you have developed local pay and conditions, details on the consultation arrangements for developing and implementing these would be useful. 2. How is pay reform linked to the Trust's service priorities and their overall strategic plan? What discussion has there been at Board level and please supply the evidence for this commitment? Has there been discussion at any local Strategic partnership/Modernisation groups as to how pay modernisation could lead to service improvements across the health community? 3. What (special) time-off and facility arrangements for staff representatives are/will be in place to support implementation? 4. Please enclose an outline of your implementation plan, describing the process you will follow, your communications strategy and your plan on delivery on benefits. Section 2 - Capacity/Track Record 5.Has your organisation received a performance assessment ('star rating')? If no formal performance rating has been given, have there been any external reviews by, for example the Commission for Health Improvement, and could you include a summary? If no review has been conducted, please include your own assessment of how you are meeting the Government's main performance targets. Please also give examples of how the new pay system could help you improve your performance. 6. What HR/Payroll information system is in place and how do you intend to utilise this for implementing pay reform? 7. What progress has the organisation made under delivering the objectives set out within the HR Performance framework? 8. Please give a brief description of your organisation(s) and a staff profile, and in particular, whether any organisations were, or are, part of (or to be part of) merger discussions. Section 3 - Benefits 9. Please put forward at least two areas in which you wish to see measurable benefits in support of improvement in service delivery and patient care. These should relate to the list provided in Annex 2 and it is most important that the benefits must be related to the quality, speed or access to patient care. These might relate either to service priority areas (e.g. Cancer, CHD, mental health) or improvements to access (e.g. through extended day working within Pathology or Radiology). You should also indicate how pay will assist you in work and service re design and give an indication of any progress you have made in this area. If you are successful in going forward as an Early Implementer in 'shadow' form we would then require a more detailed business case on benefits delivery and a project plan. In addition, the application should indicate how pay reform will help improve Staff turnover Vacancy rates Sickness absence Finally, the application should indicate progress made towards the Improving Working Lives standard(s), stating how pay modernisation will support further improvement in this area. 10. These benefits should be monitored by yourselves and will be further monitored through the performance management process on behalf of Ministers. Section 4 - Employee Relations and Pay 11. Could you provide details of the pay and conditions applying to your staff? Please give a breakdown based upon those on different local conditions, any transferred conditions (i.e. through TUPE or equivalent) and Whitley Council pay and conditions (including those on 'shadow' contracts). 12. What are your plans for communicating with and involving staff in the implementation of the new pay system? Section 5 - Financial Situation 13. What is the organisation's (each individual organisation if more than one employer taking part in application) present financial situation and predicted end of year position:- do you have a plan for how you will undertake costings when it is clear what the costing implications of Agenda for Change are? Could these be undertaken quickly? Section 6 - Training and Development 14. (a) What plans do you have for sharing the learning gained during the implementation process? (b) Give an initial assessment of the training and development needed to support implementation (we shall be carrying out a full training needs analysis with early implementers). 15. A final plan, including details of funding arrangements, will not be agreed until the proposals on the new NHS pay system have been fully consulted upon and gained support to go forward. SIGNED BY CHIEF EXECUTIVES OF THE RELEVANT ORGANISATIONS AND STAFF SIDE REPRESENTATIVES ON BEHALF OF ALL RECOGNISED BODIES
The following is a format for completion for any NHS organisation or groups of organisations that wish to express an interest in becoming an early implementer. This should be forwarded to Ray Mailly, Head of Pay Modernisation Unit, Modernisation Agency who will then forward to the relevant people for analysis and decision. Whatever the decision made, feedback will be given to enable you to progress with pay modernisation at a future date. Please complete each section and/or follow a similar format in sending in your plan. You may add attachments and supporting information to support your application. It would be helpful if you could keep this to a maximum of 8 sides.
SIGNED BY CHIEF EXECUTIVES OF THE RELEVANT ORGANISATIONS AND STAFF SIDE REPRESENTATIVES ON BEHALF OF ALL RECOGNISED BODIES
ANNEX 2 - OUTLINE OF EXPECTED BENEFITS TO BE DELIVERED RELATED TO THE IMPLEMENTATION OF A NEW NHS PAY SYSTEM
More patients being treated more quickly - with pay reform contributing directly to delivery of shorter waiting times for patients in all aspects of NHS care; Higher quality care - the reforms should lead to higher average knowledge and skill levels and a reduction in both adverse incidents and patient complaints due to poor standards of service; Better recruitment and retention - reduced turnover and vacancy rates and reduced attrition from training;/LI Better teamwork/breaking down barriers - the creation of additional posts involving new roles, additional delegation of duties from professionals to support workers, or between different professions leading to shorter care pathways and fewer adverse incidents due to poor teamwork; Greater flexibility in use of staff - extended availability of services for patients, more sharing of tasks between team members and more staff taking on wider roles; Fair pay - pay consistent with principle of equal pay for work of equal value, conditions of service the same for staff in the same grades and the same length of service; Better pay - higher NHS minimum pay rates, and the majority of staff with access to higher maximum pay rates under the new system; > Better career development - appraisal and personal development plans for staff, wider access to training opportunities, more staff progressing to new and more demanding roles; Better morale - higher staff satisfaction with remuneration and careers, reduction in sickness absence, more staff actively involved in continuous service improvement. Avoidance of risk Implementation within agreed cost envelope - the reforms should be delivered within the agreed cost envelope; Implementation within agreed management capacity - the reforms should be deliverable within an agreed timeframe in each employer with no more than a small percentage (to be specified) of staff and managers involved in resolving subsequent disputes or appeals; Implementation within agreed service constraints - the reforms should be deliverable without deterioration in key performance indicators (to be specified) and with no reported problems in staffing key services; Implementation with the majority of staff with higher pay - protection of pay will apply to those staff with a new lower maximum salary; Implementation consistent with improving working lives - no increase in non-compliance with IWL in England and the equivalent policies in the other countries. The agreement would include joint monitoring of benefits and risks during the early implementation phase, comparing participating Trusts with equivalent employers who are not participating. Professional help would be used for monitoring and evaluation.
Avoidance of risk
The agreement would include joint monitoring of benefits and risks during the early implementation phase, comparing participating Trusts with equivalent employers who are not participating. Professional help would be used for monitoring and evaluation.