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Premium Payments and Severance Scheme

In May 2013, when Amgueddfa Cymru – National Museum Wales announced its new structure, the organisation’s Senior Management Team also signalled the need to review Premium Payments. This was one of a series of actions to achieve the £2.25 million savings required (at the same time as seeking to increase other income by £0.25m).

Premium Payments are an attendance allowance, given to staff who are contracted to work rotas, that includes weekends and Bank Holidays.

Around half of Amgueddfa Cymru’s employees are currently paid an additional £54.24 per day (on top of their basic salary) for working on Sundays and Bank Holidays, and £30.06 per day (on top of their basic salary) for working on a Saturday.

Due to a reduced budget, Amgueddfa Cymru’s Premium Payments scheme cannot continue in its present form. The organisation is therefore consulting with its staff and Trade Unions on a way forward.

Amgueddfa Cymru is also reviewing its Severance Scheme as part of the changes.

No compulsory redundancies are proposed as part of these consultations.

A spokesperson for Amgueddfa Cymru said:

“Amgueddfa Cymru – National Museum Wales, like most other public sector bodies, is not immune to the challenges of the current economic climate and can no longer afford to continue the Premium Payments scheme in its present form.

 

“We are not proposing to take Premium Payments away completely. However, we have to make some difficult decisions to ensure we stay within our budget, which has recently been reduced by over 10% in real terms, and a further reduction expected over the next two years.

 

“We have entered into a 45-day consultation period with staff and recognised Trade Unions, to fully explore and discuss the future of these payments.

 

“No compulsory redundancies are planned as a consequence of this consultation and we hope to mitigate the impact on staff through increasing the basic pay for those on the lowest grades. We are also working to ensure all staff receive the ‘living wage’ or above as a basic salary.

 

“A separate consultation will be held regarding the future of Amgueddfa Cymru’s Severance Scheme. Reducing the cost of the scheme would enable us as an organisation to continue to deliver services for the people of Wales, and achieve our priorities at a time of constrained budgets.

 

“Depending on the outcome of both consultations, we hope the changes will be implemented by January 2015.”

Date: 26 March 2014
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