Union leaders say Hambleton District Council’s proposed £225,000 golden goodbye for its chief executive has left staff “dismayed and angry”.
The five local government branches of UNISON that cover the eight district, borough and county councils in North Yorkshire and represent over 6,000 workers have issued a statement after it emerged the small rural district council was proposing to allow Justin Ives to leave with an enhanced financial package.
A report to a meeting of the authority’s cabinet on Tuesday written by the authority’s leader, Councillor Mark Robson, states Dr Ives had been told he would not be taken on by the incoming unitary North Yorkshire Council, which will be launched on April 1.
The report states to avoid any potential conflict of interest over the redundancy settlement the council appointed independent, external advisers to provide advice about the settlement, including leading employment QC, Dan Stilitz, whose past briefs have involved Formula One and Chelsea FC.
The report concludes it would be appropriate for the council to grant an extra payment to Dr Ives, who recently marked his tenth anniversary at the authority, to ensure he will continue leading the authority and provide his expertise throughout the transition.
The extraordinary statement follows the TaxPayers’ Alliance roundly condemning the proposal, which includes an undisclosed “golden handcuffs” compensation payment to keep him at the local authority until it ceases to exist on March 31 as part of his settlement, despite him being contractually obliged to give six months’ notice.
John O’Connell, chief executive of the TaxPayers’ Alliance said: “Despite overstretched budgets and repeated tax rises, loaded council bosses are still taking bumper pay-offs. Hambleton Council must get a grip on these severance packages.”While the median salary at Hambleton is £22,405, Dr Ives’ £132,676 salary, which is negotiated with the leader of the council, is the highest for a second tier council officer in North Yorkshire.
The union has also revealed that according to published data in 2020, the combined chief executive salary and leader allowance was £1.91 per head of population for Hambleton district.
In the statement, the Unison spokesman said: “When we began discussions with our local councils regarding local government reorganisation in North Yorkshire, we made it very clear to councils that we expect all staff to be treated fairly and equally.
“To now discover that one of the chief executives is being allowed to leave his
employment with an enhanced package of around £225,000 has left us dismayed and angry.”
The statement adds Unison has concluded Hambleton council is not treating its staff fairly and equally.
It states: “If this package is approved by councillors on Tuesday, it will send a message to our members that those staff who are already very well paid are able to negotiate themselves better deals than lower paid workers.
“This huge exit payment will not go down well with hard working council staff and local residents who are struggling with the cost of living crisis. We have already had contact from our members who work for Hambleton District Council to express their shock and disgust at this proposal.”
The Unison statement goes on to suggest the proposed exit payment “follows a pattern” at the council.
It states: “We undertook research last year which suggested that, combined, the salary of the chief executive and the allowance paid to the leader of the Council is one of the highest per capita in North Yorkshire.
“We urge Hambleton councillors to do the right thing and vote against this proposal.
“The chief executive should be given fair notice of redundancy and receive his fair entitlement to redundancy pay. However the residents of Hambleton district should not be subsidising an enhanced exit package for the chief executive.
“That money should be spent on the residents of Hambleton district.”
Unison said it would also be writing to the other district and borough councils across North Yorkshire “to make sure they are not tempted to do the same”.
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