Cormac highways staff to receive £300k in bonuses
BOSSES and staff at Cornwall Council's civil engineering arm have pocketed bonuses totalling more than £300,000.
Cormac Solutions, the council's highways contractor, awarded 961 members of staff performance-based cash payments under its new contribution-related pay (CRP) scheme, introduced last year.
At the end of last month, £114,864 was paid to five directors and nine managers while 947 operational staff shared a £186,000 pot.
The company said the cost of the contribution-related pay scheme, which is part of a range of changes to terms and conditions of employment, was not additional pay but a payment that had been "more than offset" by the removal of increments and the savings achieved by the removal of sick pay.
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A spokesman said prior to the new contract, an incremental pay system meant pay increases related to the time staff had served rather than their contributions.
"The new scheme allows progression through the salary range for a job, dependent upon the individual's performance," he said. "This is in line with the Chancellor's budget statement in which he made it clear that he expects the public sector as a whole to move towards this model.
"It was also implicit in the collective agreement made with the unions, which saved £6 million, that the council would move away from the time-serving increments model to contribution-related pay.
"Changes to the occupational sick pay scheme and a range of positive actions such as the introduction of health and wellbeing schemes has resulted in a significant reduction in sickness levels. This produced savings in excess of £0.5 million in 2012-13."
He said the company had exceeded its profit target for the past financial year, achieved a turnover of £89 million and returned a dividend of £5.88 million to its shareholder, Cornwall Council.
The money returned had been used by the council to support the delivery of frontline services such as repairing potholes and sections of the coast path.