Unions attack plans to freeze pay of 20,000 council staff

Published on Monday 22 June 2009 10:04

UNIONS have reacted angrily to controversial plans for a pay freeze for 20,000 council staff to plug a £92 million black hole in the local authority's finances.

It is hoped the cost-cutting measure, which is being considered by city leaders, could save up to 22.9m.

Opposition politicians today said senior council officials should follow the lead taken by a string of chief executives and directors in the private sector by taking a longer pay freeze or pay holiday.

Council chiefs have already agreed to a 2.5 per cent pay rise for all staff this year but are now looking at a number of scenarios which could see non-teaching council staff facing a pay freeze in 2010-11 and the city's 3,400 teachers having their pay frozen in 2011-12.

All of the council's seven department heads earn over 100,000 a year, with chief executive Tom Aitchison the highest earner on 150,912, but the council's lowest earners are on closer to 12,000.

The Evening News revealed last month that the city council claims it needs to find the 92m in savings over the next four years to meet anticipated tough new government efficiency targets.

City leaders today said they were not currently considering pay cuts for senior staff but said the issue would be kept under "constant review".

Councillor Andrew Burns, the city's Labour leader, said: "I do think there has been a lot of unnecessary scaremongering used by the administration on this issue.

"It is quite clear that all of this is based on assumptions by the council. The Scottish Government has not even set its budget.

"The council's low-paid workers can ill afford to take what is a pay cut in real terms and it is the other end of the scale where we should be looking if cuts are necessary, and I stress 'if' because I am still not convinced this is necessary.

"I think those at the top end of the pay scale should be looking at pay freezes or pay holidays as we have seen in a lot of private sector firms such as British Airways."

City leaders are also looking at a number of other new money- saving initiatives including hiring fewer staff, reducing overtime payments and using fewer private consultants. A list of frontline council services, such as bin collections and street sweeping, which could be outsourced, has been drawn up.

John Stevenson, Unison branch president at the city council, said: "Our members have delivered millions of pounds of savings for this council in recent years and I think they will be rightly angry at these proposals.

"There will be members who are now facing losing out twice, both with a pay freeze and the changes to the job structures where they will see their pay either stagnating or dropping."

A council spokesman said: "There are currently no plans to discuss the issue of pay cuts for senior staff but difficult financial challenges lie ahead and the position will be kept under constant review, taking into account developments at a national level."