USW Pay Policy Statement

This sets out USW’s approach to pay and the relationship between the remuneration of senior management and that of other employees.

University of South Wales Group

Pay Policy Statement 2022

1. Introduction

1.1  The University of South Wales (including the Royal Welsh College of Music and Drama Ltd.) is committed to mainstreaming equality and diversity throughout all its activities, as well as meeting the general and specific duties imposed on it through relevant legislation. 

1.2  This policy statement recognises the importance of a pay structure that is equal to all, appropriate, transparent, provides value for money and rewards staff fairly for the work they perform.  This policy statement sets out USW’s approach to pay and the relationship between the remuneration of senior management and that of other employees.  It has been produced in accordance with the principles outlined in Welsh Government’s “Transparency of senior remuneration in the devolved Welsh public sector”published in December 2015.  

2. Legislative Framework

2.1 In determining the pay and remuneration of all of its employees, USW will comply with all relevant employment legislation.  This includes: 

  • Equality Act 2010;
  • Part-time Employment (Prevention of Less Favourable Treatment) Regulations 2000;
  • The Agency Workers Regulations 2010;
  • Where relevant, the Transfer of Undertakings (Protection of Earnings) Regulations.

2.2. Whilst not legally binding, USW has elected to become a Real Living Wage Employer. Accordingly, it will abide by the principles and requirements of this commitment that implements a higher minimum threshold than the National Living Wage.

3. Definitions and the Responsibility for Pay Decisions 

3.1 The University’s Remuneration Committee reviews the remuneration of the Vice Chancellor and makes recommendations to the Board of Governors.  

3.2 The Committee ensures that any recommendations are fair and considers the institutional interest, sustainability and reputation as well as the public interest and the safeguarding of public funds as part of its deliberations.  It uses comparative information of other Universities to inform its decisions.

3.3 The Remuneration Committee makes recommendations to the Board on severance payments to the Vice Chancellor; the Culture, People and Values Committee recommends severance payments to other senior staff to the board.

3.4 The Culture, People and Values Committee reviews the remuneration of the holders of senior posts, other than the Vice Chancellor, including:

  • Deputy and Pro Vice Chancellors
  • Deans and Directors 
  • University Secretary and Clerk to the Board of Governors
  • Principal (RWCMD)
  • Principal (College Merthyr Tydfil)

3.5 The Committee ensures that any recommendations are fair and considers the institutional interest, sustainability and reputation as well as the public interest and the safeguarding of public funds as part of its deliberations.  When available and appropriate, it uses comparative information of other Universities to inform its decisions.

3.6 For all other staff, the University uses a systematic approach to determining the value and worth of posts in line with its pay structure, using a system called ‘HERA’ (HE Role Analysis). This system is widely used throughout the HE Sector

4. Employment Terms and Conditions of Employment 

4.1 The Universities, Colleges Employers’ Association (UCEA), and all the trade unions recognised by the HE sector negotiated a National Framework Agreement in May 2004 to reform pay structures, grades and some terms and conditions across the sector.  This was implemented through a local agreement between the University and the relevant trade unions in 2008, which remains in place today.  The National Framework Agreement applies to both the University and the Royal Welsh College of Music and Drama Ltd. 

4.2 The Royal Welsh College of Music and Drama Ltd. employs some staff on different terms and conditions to those referred to in paragraph 4.1 above, as they are protected by TUPE Regulations.   

5. Collective Bargaining Arrangements

5.1 The University of South Wales has a strong relationship with Trade Union colleagues and works closely with them on non-pay related matters.  For the purposes of collective bargaining on terms and conditions of employment for USW and RWCMD employees, the following trade unions are recognised through local agreements:

Organisation Recognised Trade Unions
Royal Welsh College of Music and Drama Ltd. UCU and Unison
University of South Wales UCU, Unison and GMB

5.2 Pay awards for the annual review of the pay spine (salaries up to spine point 51) are negotiated at a national level and are led by UCEA (Universities and Colleges Employers Association) on behalf of the member universities for the University of South Wales and Royal Welsh College of Music and Drama Ltd.

5.3 The University annually decides if it will participate in national negotiations.  There is an agreed procedure for negotiating on pay, which consists of three meetings between UCEA and the representative Trade Unions. These meetings are held in March to May of each year and the annual review is effective from 1st August.

5.4 The adopted approach over many years is that the same nationally agreed pay increase is applied to all senior posts beyond the national pay spine  

6. Pay Principles

Together with pay bargaining arrangements the University and College adopt the following key pay principles:

6.2 Affordability and value for money – One principle is to remain efficient, effective and financially stable.  When giving consideration whether to agree to a national pay award, the Board’s considerations include affordability and value for money.  

6.3 Equal Pay - The University and College are committed to ensuring there is no pay discrimination within its pay structures.  The University and RWCMD completed their latest Equal Pay Audit in May 2020.  The Audit was conducted by a joint Trade Union/management working group in accordance with the New JNCHES Equal Pay Reviews Guidance.  The Audit compared the pay of the protected characteristic groups (age, disability, race, sex) to ensure equal pay is given for equal work.  The findings of the Audit and recommendations were reported to the Senior Staff Pay Committee in September 2020 and subsequently to the University's Board of Governors.

6.4 Openness and Transparency – The University publishes its Financial Statements and Annual Review for year ending 31st July, each year. This includes the salary of the Vice Chancellor and any senior managers paid above £100,000 per annum.  

6.5 A focus on addressing low pay and supporting the Living Wage - The University and College are committed to the principles of equal pay for work of equal value and operate a job evaluation scheme to measure the relative value of all jobs in the pay and grading structure within an overall framework that is consistent, transparent and fair. Both the College and the University are accredited Living Wage employers.

7. Pay Structure and Incremental Pay

7.1 The University’s relevant pay structure is shown at Appendix 1.  For eligible staff, incremental progression within the assigned grade for a post will be actioned annually on 1st August unless an employee has been on their incremental point for less than six complete months on that date (when progression will commence in the following year).

7.2 Incremental progression may be withheld in the event that performance is identified and confirmed as unsatisfactory; or in the event that probation is extended.

8. Pay and Reward 

8.1 In addition to an employee’s salary, the University offers a comprehensive range of both financial and non-financial workplace benefits.  This includes:

  • All USW and RWCMD employees are auto enrolled into the Teachers’ Pension Scheme. Existing USW and RWCMD professional services employees have access to the Local Government Pension Scheme. Whilst these schemes now operate under a Career Average, rather than Final Salary methodology, they still attract a very favourable employer contribution  
  • The University currently operates salary sacrifice arrangements in respect of childcare and a cycle to work scheme and offers a generous annual leave entitlement
  • There are a number of promotions and discounts available to all staff for example: reduction for gym membership in a number of gyms and discounts for many shops

9. Pay Relativities

9.1 The lowest pay within the University of the South Wales and the Royal Welsh College of Music and Drama is associated with Grade A, Spinal Column Point 3. However, as the University is an accredited Living Wage employer,  employees are paid the hourly rate of their substantive spinal point or the Living Wage rate, whichever is greater. The highest paid member of staff is the Vice Chancellor.  Pay relativity comparisons are provided at Appendix 2.  

10. Talent Management

The People Plan is an enabling plan aligned to the USW 2030 Strategy and identifies the goals and ambitions in respect of talent management.

11. Reviewing this statement

11.1 This statement is for publication on the Univeristy website.  It will be reviewed and updated on an annual basis by the Remuneration Committee or when direct changes occur.  

Appendix 1

USW and RWCMD Pay Structure (download in Excel)

Appendix 2

Pay relativity comparisons

Multiple of salary (31st July 2021) Ratio for University of South Wales Ratio for Royal Welsh College of Music and Drama
Ratio
Low to high
The multiple between the annual salary of the lowest* and highest paid employee as a ratio 1:9.81 1:8.76
Median ratio
Low to high
The multiple between the median annual salary of the University and the highest paid as a ratio 1:5.24 1:4.6

* Uses Real Living Wage rate at the applicable date

NB. The ratios published in the Financial Statements are for the USW Group so vary from the ratios published above which are for two constituent members of the USW Group. 

Appendix 3 - Annual Report Pay Policy Statement and Senior Remuneration

Document Information

Version Issue Date Revision Description Author Approved By & Date Next Review Date
1.0 09/04/15 First Issue Tracy Owen HRC Nov 2017 May 2018
2.0 07/07/20 Catherine Thomas July 2020