Councillors and unions on collision course over job cuts

Published on Saturday 26 September 2009 11:37

UP TO 3,000 frontline council jobs could be lost to the private sector under radical plans being drawn up to plug a £100 million funding blackhole.

Bin men, dinner ladies and staff working in the city's museums and arts venues are among those

who could be affected in a move set to put council bosses on a collision course with unions.

There was further anger today after it emerged the council is set to spend up to 250,000 looking into the proposals, including on the use of private consultants.

The extreme measures being looked at come after the Scottish Government announced it would be cutting the size of the block grant handed to the Capital.

A report going before the council's policy and strategy committee next week will outline proposals for "alternative business models," which could see jobs outsourced to private firms.

Opposition councillors today raised fears that up to 3,000 posts in departments including transport, environment and culture could be at risk.

Councillor Andrew Burns, leader of the Labour group, said the council had not through the plans through.

He said: "It's getting pretty close to decision time on this. Clearly, the administration is looking to make a decision on this as part of this year's budget.

"They're potentially talking about outsourcing 3,000 council staff – that's around 15 per cent of the council's overall workforce.

"I don't think enough thought has been given to the ramifications. Putting up to 15 per cent of council staff out to tender is not the best way to save money."

In a report to councillors, council chief executive, Tom Aitchison, said it was recognised that "radical change" was needed involving "controversial decisions".

He adds: "If significant efficiencies cannot be found across the organisation then there is a real prospect of major reductions in frontline services."

Last week, the Evening News reported that the council was exploring a range of cost-cutting measures, including four-day weeks and selling off property.

It is understood that the local authority will look to redeploy any staff whose role is axed, but employees have been warned of "tough decisions" ahead.

It follows a move by the Scottish Government to reduce funding levels for the city at a time when the council is facing huge pressures from a rise in the cost of providing care for people with learning difficulties, vulnerable children and those over the age of 85. In addition, energy costs are rising and the council is having to continue the expensive process of modernising pay.

John Stevenson, Unison's branch president on the city council, said: "The argument we're making is that this is the time to invest in public services for the sake of stimulating the economy.

"Outsourcing is not going to help, and just leaves councillors with no power to do anything apart from overseeing contracts."

He went on to criticise the council for spending up to 250,000 on private consultants to look into how to instigate the measures.

"This kind of money would just about have filled the gap in funding earlier in the year in children's services. We've always opposed the use of private consultants, especially when the council have people on the ground who should know what they're doing."

Council leader Jenny Dawe insisted that it was too early to talk job cuts.

She said: "It is inflammatory nonsense to crystal ball gaze and suggest thousands of job losses.

"This exercise is not about losing jobs. It is about exploring all of the options for delivering services more effectively."

On the subject of consultants' fees, she added: "The exercise will require some investment up front in specialist support from consultants but the bulk of the 250k is to fund the release of staff internally to assist with this process."

DEPARTMENTS UNDER THE MICROSCOPE

The council is looking at various departments and areas as part of the review:

Culture

Referred to in the report as "cultural facilities," this area includes the council's museums and arts venues. There are the equivalent of 162 full-time members of staff, and the department has an annual expenditure of just over 5 million.

Transport

The council's fleet maintenance and transport services are among the areas being included in the investigation of "alternative business models." There are the equivalent of more than 120 full-time members of staff employed, with a budget of around 9m.

Environment

This department includes refuse collection, street cleansing, ground maintenance and roads workers. There are the equivalent of more than 1,000 full-time members of staff and the department has a budget of 45m and a capital programme of 23m.

Property and facilities management

Includes staff working in catering, cleaning, housing repairs, as well as those charged with maintaining the council's buildings. This is the largest area of the council presently under review, with the equivalent of more than 1,330 full-time staff and a budget of 52m.

Corporate services

This sector includes HR , payroll, revenue and benefits and administration services.Thought to employ several hundred staff.