High-paid Edinburgh Council staff face pay freeze under Labour plan

Published on Monday 8 February 2010 10:16

A PAY freeze would be slapped on every council worker in Edinburgh that earns more than £40,000 a year under budget plans drawn up by opposition councillors.

The Labour group on the city council wants directors, senior mangers and other well-paid staff to take the pain instead of proposed cuts to frontline services, in a move that would save 390,000.

It is also calling for a management shake-up that would save another 1.5 million.

The proposals come as city council chief executive Tom Aitchison also revealed his own plans for a major management reshuffle that would save 4m over three years.

He wants to cut a tenth of all management costs over the next three years.

Under the Labour proposals, to be unveiled formally on Thursday, the pay freeze would affect 1,269 staff.

Councillor Andrew Burns, leader of the Labour group, said: "We feel very strongly that those who can afford to take some of the pain now should do."

Under Labour's proposals, which have been drawn up with the help of a council finance officer to ensure it is achievable, 1.5m would be saved in 2010-11 by "management de-layering", including combining the central functions of the corporate services and finance departments.

The budget is designed to find the required 27m savings but avoiding frontline cuts.

"In the current climate we should not withdraw frontline services, we should protect them," said Cllr Burns.

"It is folly to cut them now when we are just coming out of the recession. We should protect them until the economy strengthens and we can do that by merging back office functions and other efficiencies."

Mr Aitchison revealed his own management cost-cutting proposals in papers submitted ahead of Thursday's budget meeting. Around 900,000 of savings have already been identified. He said a further 30,000 of savings were currently being identified.

Mr Aitchison said: "Reducing management costs through retirements, efficiency saving measures and alternative business models will all help towards achieving the required financial targets.

"However, savings beyond this will require a more radical examination of management and the introduction of fewer, but more professional, managers responsible for larger groups of staff."

ALL THE TRIMMINGS

The Labour group proposals include:

&#149 No cuts from any school budgets

&#149 No cuts from grants to third parties and voluntary groups

&#149 No cuts to funding for care for the elderly and disabled

&#149 Freeze the pay of staff on more than 40,000 and all councillors

&#149 Cut 200,000 from taxi charges and consultant fees

&#149 Ringfence money to keep the four city crches open

&#149 Put 2 million 2009-10 underspend back into 2010-11 budget instead of reserves