Agenda item

A report was presented which provided an update on the development of the Social Value Contract (“Employer Contract”) element of the Inclusion Plan.

Members recalled that at the Board’s meeting held in May 2021, the approach and agreed parameters for the Inclusion Plan had been endorsed.  A number of the modules within the Inclusion Plan had outlined how the economic development activities could be more inclusive.  The Social Value Contract, subject to debate and agreement at the SYMCA, would be an agreement between the SYMCA and any organisation seeking funds.  The aim was for the Social Value Contract to help deliver upon the inclusive growth aspirations outlined in the Strategic Economic Plan.

J Guest referred to the current engagement phase with private sector colleagues, education and voluntary sectors.  Work continued to explore how the Social Value Contract could be implemented through legality of elements, proportionality and balance.  Engagement continued with the local authorities to explore their role in relation to this.

Members were referred to the appendix to the report, which provided an early draft of the Social Value Contract.  Members noted the commitment around the Real Living Wage, together with the advantages and disadvantages.

In response, to a question raised by J Chetcui regarding the type of businesses that the Social Value Contract would apply to, F Kumi-Ampofo referred to the commitment made within the SEP regarding the contract that was in place for all of the employers and applicants that had a funding relationship with the SYMCA.  It was vitally important to ensure that the balance of the implementation was correct to ensure that it was not unduly burdensome and to generate the outcomes of the funding that was sought, whilst being sensitive to the smaller businesses and other matters.

Following a question made by P Kennan to clarify whether the investment made by the SYMCA related to monetary terms/the investment of time in the businesses or both, F Kumi-Ampofo commented that the investment made by the SYMCA related to monetary terms and to a contractual relationship with a business or another partner which involved some financial support.  In general, the LEP and SYMCA were behind the curve in comparison to other regions which had the Preston Model and charters in place.  However, work was underway for those to be implemented within South Yorkshire.

In relation to the diminishing returns, P Kennan queried whether a two phase approach could be supported to deal with the large businesses initially, which would then be extended to SMEs when it had been proved to be a workable model.

J Muir considered that P Kennan’s request was too early, due to it being dependent upon the criteria.  He considered that without there being tangible elements on paper to ascertain whether this was practical or not, it should be determined prior to whether a two phased approach was required.  A consultative process would be undertaken to consider the elements and to make a judgement thereafter.

P Kennan considered that it would be helpful to see the detail, in order to determine whether he would be supportive of the suggestion.

In response to a question raised by L Nickson, F Kumi-Ampofo provided assurance of the conversations underway with businesses, local authority partners, universities and others in order to gain learning.  Learning was also being achieved through the engagement with the consultant.

In relation to support and financial support, K Beardsley queried whether the SYMCA sought employers to sign up to the initiative and to be recognised within the region as one of the employers that had done so, even if no financial support was required.

Members noted that the report dealt with the contractual relationship between the employers, organisations and businesses with the SYMCA, where some financial support would be required.  Work was underway in relation to the Charter regarding the culture change and better employment practices within South Yorkshire, which would be brought to the Board in due course. 

The Board noted that the consultation was underway across a very broad spectrum of business representative groups, with a view to concluding as much as possible between now and January 2021. 

Mayor Jones CBE concurred with the foundation living wage, which she had introduced when she had initially come into office for those individuals that worked within DMBC.  The foundation living wage helped to stimulate local economies.  She highlighted the need to consult further on the matter.

Members were referred to the internal discussions underway with colleagues to ensure that the resource implications were fully understood.  It was anticipated that approximately 10 – 50 contractual agreements would be undertaken per year, dependent upon the types of programmes that were ran.

J Muir expressed his thanks to everyone for the comments made.  He appreciated the support provided by P Kennan on the matter, together with the consultations that had been initiated as part of the consultation process.  He considered that there was no reason why any employer should not be awarded the foundation living wage.  He was confident that with the participants of the Board, that a benchmark would be achieved that could be supported by most companies.

RESOLVED – That the Board:-

i)        Considered the progress made to date to define the content of the Social Value Contract, noting the detail in Appendix A to the report.

ii)      Noted the dilemmas in specifying content and debate how these are reconciled, to inform and support the SYMCA in their decision making on the final options for consideration.

iii)     Noted the intended timescales for the presentation of the final option and recommends, for the SYMCA to consider, any additional work required in development of the content or the engagement on this.