City job cut fears as firms invited to bid for contracts

Published on Saturday 14 February 2009 10:19

FEARS have been raised over job cuts after city leaders revealed plans to put the council's customer service functions out to tender.

Council chiefs are to invite private firms to submit ideas on how they could improve the customer facing areas of the council, such as council tax collection or its call centre. The initiative would see companies come in and manage or reorganise council departments with them splitting the money saved with city leaders.

Union bosses have today requested an urgent meeting with chief executive Tom Aitchison for more details on the move.

It is thought an official tender document will not be issued until the summer, with any changes not expected to be in place until next year at the earliest.

A similar initiative in Liverpool saw the local authority there save millions but a series of reorganisations did result in job losses.

Council chiefs have already used external management consultants to reorganise a number of key departments.

City finance leader Gordon Mackenzie today insisted the move was about improving services and added the intention was not to axe council jobs. But unions and opposition politicians today raised concerns about public services falling into private hands.

Unison's service conditions convener John Ross said: "We are very concerned about this. If the work goes into private hands then you are losing control which the council should have and we are of course very worried about the impact on jobs.

"We have seen the impact (management consultants] Pinnacle have had on other council services where there has been job losses."

It is thought an advert asking firms to note interest in developing "new business models for delivering services" will be placed in the next few weeks.

The city's Labour leader, Councillor Andrew Burns, said: "I've got serious concerns for both the council employees and the quality of services if we go down this road. I have been down to Liverpool and seen how it works there and they have had a reduction in staff.

"It may be the case there is scope for reducing the number of staff but what has to remain paramount is the quality of service."

Management consultancy firm Pinnacle was paid 3.6m to carry out a shake-up of the council's waste department aimed at bringing in changes to save 11.7m over the next three years.

Cllr Mackenzie said: "There are a number of council services which we are not delivering as efficiently as we could be. This tendering process will not be looking at areas like education or social work but more the customers service functions such as council tax enquires.

"It has the potential to make significant savings for the council and provide better services."