Scots Gov heritage staff rage on pay rises and director golden goodbye

Donnella Steel, the finance director at HES has been at the centre of a controversy over being allowed to jet off to New Zealand for nine weeks as dozens of tourist attractions remained closed.

It has emerged that the leaked details of the New Zealand national’s trip has sparked an internal investigation which some internally have described as a “witch-hunt” over how details managed to leak.

Now it has emerged that another key HES figure, the director of communications Lisa McGraith who left under a voluntary exit scheme on September 30, last year, has received £86,000 in compensation on top of six-months salary of £62,500.

Ms McGraith, who led the HES communications team for almost 10 years and was on the board of directors, became an executive adviser for the Scots learning disability charity Enable Group the following October before joining Glasgow-based communications consultancy, Spreng Thomson as the new communications director last month.

Her departure from HES came as a result of a controversial restructure in which her post disappeared.

A source close to the restructure negotiations says she was asked to take a lesser role and had effectively been forced out.

The source questioned the leadership of the chief executive Alex Paterson who had overseen the restructure claiming he wanted people around him who were his favourites.

“There is significant disquiet throughout the organisation at the judgement being shown from the very top of HES," said the source.

Meanwhile there have been internal rumblings over Ms Steel’s huge 19.5% rise in remuneration including pension benefits since Covid struck - causing major controversy amongst some staff internally.

Ms Steel’s remuneration including pension benefits has risen from £102,500 in 2019/20 to £122,500 in 2021/22. HES say it is the result of her remit of her role increasing “significantly” in October 2021.

The cost of the salaries including pension benefits of HES’s senior management team has shot up by £132,000 from £843,000 before the Covid pandemic in 2018/19 to £975,000 in 2021/22.

It comes as fears have been raised about the future of Scotland's historic buildings with funding set to be slashed by the Scottish Government.

HES, the body set up to "investigate, care for and promote Scotland’s historic environment," is due to have its budget cut by £13m over the next five years as a result of a May spending review by finance secretary Kate Forbes.

While spending will increase from £61m this year to £63m in 2023/24, it will steadily decrease to £48m in 2026/27.

HES has responsibility for over 300 properties of "national importance" which are visited by five million people every year, including the likes of Edinburgh Castle and the Antonine Wall.

Two years ago, HES said that the impact of Covid-19 has hampered around 85 per cent of its non-government funding, with visitor number plummeting.

Mr Paterson told the Scottish Parliament that that had created a £53m hole in its budget for 2020/21 alone.

The previously week, the Scottish Government announced £23m in funding for HES to support the reopening of its sites.

Meanwhile, according to the HES website, over 60 of the 336 properties managed by HES and attract millions of visitors remain “closed or partially closed” after inspections last year identified a risk from “unstable masonry at high level” linked to deterioration caused by factors including climate change. HES says it is actually now at 44.

Sites that are affected include Dumbarton Castle, which was where William Wallace was taken after his capture in 1305 and Doune Castle, which was used for several scenes in the classic movie Monty Python and the Holy Grail.

Also on the list are Arbroath Abbey, Linlithgow Palace, Caerlaverock Castle, Aberdour Castle and the Borders abbeys of Jedburgh, Dryburgh, Kelso and Melrose.

Video: Historic sites inspection programme -  behind the scenes

One staff member said they want the financial affairs of HES examined by the public spending watchdog Audit Scotland saying its affairs were a "scandal".

The source said Ms McGraith was "hounded out", was “well liked and capable” and that the pay off was “public money thrown away without good reason”. The source said staff were "absolutely furious" about the pay rise for Ms Steel - which makes her the second highest paid executive outside of the chief executive Alex Paterson - saying it was way above normal internal pay scales.

According to an HES fair pay disclosure, the average remuneration for the highest paid in the HES, referred to as 'upper quartile' rose by 6.24% from £35,090 in 2020/21 to £37,283 in 2021/22. The average pay for the lower quartile rose by 4% from £19,951 to £20,751..

The source said: "Why did the CEO choose to treat Ms Steel so differently - letting her jet off and work overseas and at the same time secretly paying her more than anyone else. He is paying her more than the HES pay scale - do ministers know about this - does our board?"

According to an internal circular to staff Mr Paterson confirmed there was going to be an investigation into the leaking of details of the decision to allow Ms Steel to work remotely from New Zealand saying the interest generated was "very personal and distressing". One staff member said it was a "witch hunt".

He said that he gave approval for Ms Steel "to work outwith the UK on this occasion".

It is understood Ms Steel’s New Zealand trip was scheduled to start in late October, taking in Christmas and ending in early January.

A minority of the weeks were believed to have been pencilled in for work, with the remaining time covered by annual leave and public holidays.

Mr Paterson said the leak "constitutes a personal data breach, and I have asked that an investigation is undertaken to establish the facts around this incident".

And he said that the entire executive leadership team were concerned for Ms Steel's well-being over the breach.

"I find it disappointing and unacceptable that anyone would think it appropriate to share personal information about a colleague in this way. It is completely incompatible with our organisational values and behaviours," he said.

"I would encourage any member of staff concerned about anything relating to their work to speak to their line manager or raise it through our confidential 'open doors' section in HIVE."

Another staff member said: "The concerns about organisational value and behaviours are shocking considering what is happening with pay offs and salary rises at a difficult time. I don't understand how there can be such an almighty pay off on a voluntary severance in the current climate."

HES said that in line with other Scottish Government bodies, a voluntary exit scheme was available on application to staff across HES and Ms McGraith decided to leave the organisation.

It said: "All renumeration was in line with the terms of the scheme."

On Ms Steel's pay rise, HES said: "In October 2021, the remit of the role held by the Director of Finance and Corporate Services increased significantly. To address the increased responsibility, a temporary allowance was put in place, following the normal approvals processes. A wider pay and grading review is currently underway across HES and will look at the remaining senior roles, alongside all other roles within the organisation."

In response to the controversy over Ms Steel's New Zealand working, HES said: “We are currently continuing, alongside many organisations, to operate a hybrid business model which provides staff with the flexibility to work within the office or remotely, subject to business requirements.

“In the case of the finance director, they are a New Zealand national who has travelled there for the first time since Covid and all costs relating to them being based there for a short period of agreed leave and work are being met entirely by that individual and not by the organisation.

“Due to the time difference, core hours have been arranged to meet commitments here and full contracted total hours are being met with the rest taken as annual leave, which they have saved up over the course of the year.”

Richard Hardy, national secretary for Scotland for the Prospect union said: “Following the reorganisation, Lisa’s role in the senior management team was one of those which disappeared. The alternative roles offered were not suitable and as a result Lisa chose to pursue voluntary severance in accordance with Scottish Public Sector policy, supported by her union Prospect. Her voluntary severance was approved by HES and Scottish Government”

“All staff at HES with the exception of the chief executive are covered by collective bargaining conducted by the recognised unions. Negotiated pay offers have been conducted and agreed in line with Scottish Public Sector Pay Policy”