WARRINGTON council could shed an estimated 1,800 jobs over the next three years in a bid to plug a £30 million black hole in the council coffers, with the first round of job cuts set for April 1.
Talks are currently ongoing with 77 employees facing redundancy by the start of the new financial year. It will be the first phase of cut backs as the council faces unprecedented economic times.
Diana Terris, the council’s chief executive, said: “Public sector bodies are under considerable pressure to deliver high quality services more efficiently.
“As we look to set a budget for the next three years, we are reviewing our organisational structures to continue our drive to modernise and transform the way we deliver these services in future. We recognise the need for change has consequences for our workforce over the next three years and it is clear that whatever we decide to do, it will potentially involve reductions in our overall workforce numbers.
“We are currently consulting on up to 77 potential redundancies; however the actual number will be influenced in part by any final decisions the council makes on the budget and if we decide not to follow a particular course of action, that could reduce the numbers involved. We expect that the eventual number could be lower as we seek to recruit staff to posts in new structures and explore and implement redeployment opportunities for affected employees wherever possible. We have given a commitment to exploring all alternatives to compulsory redundancies but like many local authorities, we cannot rule this out completely.”
There is currently a consultation ongoing with affected employees and the trade unions that envisages up to 77 potential redundancies by April 1 this year, which would include those employees who during the course of the consultation may select to leave the council under voluntary redundancy.
Looking to the future Ms Terris added: “Where appropriate, we will freeze recruitment to all non-essential posts and if it can be achieved without detrimental impact to key services, will not replace posts when people leave so that as far as possible, we can meet any redundancies through voluntary means or natural wastage.”
The council’s current workforce, including staff in schools, stands at just under 9,000.
There is a figure in the council’s budget consultation which indicates the potential for up to a 20% reduction in overall workforce over the next three years, which would equate to a reduction in the work force of around 1,800 people, although the council says it is not possible to say what the total figure might be at this stage, as they plan to mitigate any compulsory redundancies through redeployment, internal recruitment and voluntary redundancies as far as possible.
4 Comments
It would appear to me that the black hole is actually comprised of a gross £40 million because, included in the plan, is an assumption of additional net rates income of £11 million over the three plan years, which then gives a net c£30 million. On council tax, additional income of c£14 million is pencilled in and domestic rates bills will average c9% higher in 2012/13 than in 2009/10. There are other reducing income streams to balance to the net c£11 million additional incom.
It also seems to me that, although there are redundancies indicated in the plan, then so is there a huge wages increase totalling £13.8 million re equality pay and restructuring, which perhaps makes nonsense of an overall pay freeze.
As for services, it seems from the plan that services to the old and vulnerable are in for c£11 million net ‘savings’. If this is so, then how are services going to differ tomorrow from today?
On the other hand, it would appear that children’s services get a net investment of c£6 million – a response to recent commentary, perhaps?
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Please note the "Zzzzz" was not intended towards the journalism but towards the quote from Council CE 🙂
Knowing how the council estimate finances, 1800 will turn into alot more.
Phase 1 has begun, watch out or phase 2.