Council cuts will cost £11.5m

Saturday 14th February 2009, 11:00AM GMT.

Council taxThe cost of axing more than 180 jobs during the shake-up of Shropshire’s six major councils is £11.5 million, it was revealed today.

At least 182 workers will be made redundant when the county moves to unitary in April.

And the redundancy bill, most of which has already been met, is a total of £11.5million – £6.7million on direct redundancy costs and £4.8 million on extra pension payments.

Councils in Shropshire also face losses of about £1.5 million because of the recession, with authorities losing cash from land charges, investment income and fees.

For the full story see today’s Shropshire Star

 


  1. 1
    andrew finch

    A total disgrace.Im sure the bill could have been a lot lower than this .This country realy is a joke pigs with there snouts in the troughs as all else go to pot.get my one way ticket out a few more years of saving.

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  2. 2
    Nick

    Why is it that government employees get outrageous redundancy payments and yet Mr Average, who is not a government employee, gets the rate ironically set by the government of maximum £330 for every year worked to a maximum set number of years.

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  3. 3
    merc

    Government work. Do the minimum but be seen to perform, if you get into fix either pass on the blame or if your options are really out, go running to your union. 35 years of greasy pole slithering, get patted on the head claim your pension prize and wander off into the twilight.
    Lovely. Except the culture is about to change. The private sectors patience is starting to wear thin.

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  4. 4
    Rodney Nosnail

    Just in case anybody can’t work it out, that is £63889 per job.

    (Wonder how many of those will be back in tax-payer funded jobs within 6 months? Nice work if you can get it.)

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  5. 5
    john thornicroft

    Sir Digby Jones thinks the civil service could function with only 50% of the staff, i suspect this is true of local government too,

    just how much could this country really achieve without the burden of the public sector, like a parasite on our economy

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  6. 6
    andrew finch

    4&5 raise some very good points. i worked with a chap we all called action replay lez reason we never actually saw him working and if he saw us looking he would go through the motions for our benefit. It seems in the uk putting on the appearance of doing a job gets rewarded although i do think the tide is turning but sadly not until the pigs with there snouts in the trough have had there fill this time around.

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  7. 7
    Keith

    So each person made redundant will cost on average almost £64,000. Having been made redundant three times in my working life the total I received for all theee times was less than a tenth of that. The states employees have no concept of how the ordinary taxpayer has to struggle to give them a lavish living.

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  8. 8
    devon salopian

    it is high time we had savings right from the top. we do not need more than say 250 mp’s, saving approx 400 salaries and expenses. also we do not need loads of mp’s representing wales, scotland and n ireland. one from each will be sufficient.
    likewise county council numbers can be dramatically reduced, the only increase i would advocate is in the parish councils where councillors do it as a service to their fellow parishioner and do not have expenses.

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  9. 9
    Amber

    And now for the reality check.

    Local Government workers are notoriously low paid, as anyone who’s ever worked in local government will know. I earn around £11,000 a year before tax, and lose about £100 of my salary to that and another £100 to national insurance, pensions and anything else on the way.

    Where I work, two colleagues have essentially lost their jobs because of the change. One is being forced to move to a completely different role, and the other – who has been a manager for some years – is just being made redundant. Her redundancy packet is not enough to even pay off her mortgage although she has recently moved house, and she will have to find work again as soon as the terms of her contract allow. This will probably not be anywhere near her position at the current time.

    The cuts are happening to real people at low/average levels of income. Nobody where I work earns anything like the amounts people see in the press. Even at the most senior role of where I am, the pay is well well below what management in a private sector company earns. Our budget has been cut consistently year after year, we are often short staffed, left understaffed and dealing with difficult situations yet our standards are meant to be maintained throughout. The council isn’t just fat cat councillors or people pocketing money at Shirehall’s expense. They are people providing social services, library services, transport services and many many other things all across Shropshire. These are the people who are ACTUALLY affected by the cuts.

    Do not believe everything you read in the press. The cited cost is not just being paid to staff but it has paid for the reorganisation of the council and the the advertising for temporary posts to fill gaps, the advertising for posts that have become permanent, communication and meetings on all of these changes and updates and whatever else has needed to be done to implement the new structure.

    *Very little* of that money is going into any former employee or current employee’s pocket. At least not in the directorate which affects my current colleagues. (Who will, incidentally, be much missed and who do not WANT to leave but are being MADE to by the changes implemented over their heads)

    I can’t speak for the rest of the council, but at least I can speak as someone who knows a bit about the reality of it, as opposed to the above posters who really don’t seem to understand what local government workers actually do…

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  10. 10
    Andy

    I posted on this with the average figures on saturday but apparently the moderator cut it because I suggested a protest at the offices…

    Why do that Shropshire Star? Are you protecting these leeches?

    As for Amber: The reality check is you are living in cloud cuckoo land:

    “and my manager cant even afford to pay off her mortgage”

    I worked for a PLC that went into adminstration a couple of years ago. I got one of the best severance packages in the firm, (as I was retained for three years as a consultant in golden handcuffs), but didnt get anyway near enough to pay off my mortgage.

    And I also believe that anyone getting redundancy should be barred from working for the public sector until their redundancy has whittled to nothing. I bet most of these are leaving one job and then being taken on for the “new roles” you mention… Correct me if I am wrong but if there are new jobs then shouldnt they go to the people who are in fear of redundancy? I bet they wouldnt take them anyway: would you? £63,000 in your pocket tax free and free to go get another council job, (as we all know the council dont like taking people from the private sector – scared of being shown up by someone with a work ethic that doesnt revolve around tea breaks and 6 months off on stress every other year!)

    Its a joke and I am fed up of being bled dry by these guys. If there is a public protest I am definately there! If we dont stand up against them we deserve everything we get… I bet this wouldnt happen in France!

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  11. 11
    Mark

    Amber – well said.

    Andy – total nonsense which speaks volumes about you I’m afraid. So councils refuse to accept people from the private sector do they? – well here’s a reality check for you, I’m employed by a local authority but by far the greater part of my work history has been with the private sector. In fact, I also still work part time in private industry. Many of my colleagues have also come from the private sector.

    Usual baseless opinions in the main here, posted by generally clueless individuals who have obviously formed their opinions on what they’ve read in the tabloids.

    Dear oh dear, is it any wonder that this country is in such a state?

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  12. 12
    Lou Gladden

    Amber is the only person who has some knowledge of what she is saying and Nick has some idea of the redundancy regulations what he carefully missed was that these are the law of the land and apply to everone in employment be it private or public sector.The other point that has been missed that this is a one off cost and five chief excutive going save £800,000 year on year at todays pay rate.Most of these payments are the same as you would be entitled to in any company had you worked there that long any other money comes from the pension lump sum and is contributed to by the employee and is based on length of service. At least in Local government they don’t pay bonuses worth millions for complete failure as seen in the wonderful private Banking world.

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  13. 13
    Peter

    Andy,

    Only the first £30,000 of any redundancy payment is tax-free. The rest is taxable at the relevant rate for the corresponding year.

    I love the idea that the council ‘don’t like taking people from the private sector’.
    I wonder how many of the people here who constantly offer ill-informed criticism of those that work for the government/council have ever applied to work for either? They probably either didn’t meet the minimum qualification levels, or weren’t prepared to put up with the poor pay.

    But hey, – let’s not let the facts get in the way of a good whinge…

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  14. 14
    Badger

    Here here for Amber, the truth is Local Gov pick up all the difficult thankless tasks that the private sector wouldn’t touch with a barge pole because there is no profit attached.
    looking after the elderly, children at risk etc etc. Having worked in both private and public sector there is very little difference except in the public sector you get paid less. In the private sector you can turn out tosh but if it makes a profit that’s all that counts, make the slightest of slips in Local Gov and it gets smattered all over the press. In my experience those who knock ‘council workers’ are often those that have applied for council positions but have been unsuccessful. As for the big payouts those are reserved for the likes of the Chief Exec’s etc. who’ve been on reasonable salaries and have in some cases given 30+ years service at that level to the county, leading organisations with hundreds of staff, multi £m budgets across many diverse functions, yet receiving a fraction of the pay compared to a similar job for a FTSE 100 company.

    I’m not suggesting you get your violins out but get real.

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  15. 15
    Rodney Nosnail

    Amber’s statements have encouraged many good folk to rally to the support of council workers. No problem there, and it’s true that the argument should not be too one-sided.

    However, from Amber’s comments, it’s possible to get an idea of the way of thinking that percolates into the council employee mind-set and gradually creates the problem:

    For example:

    1) Shock, horror! One colleague being forced to move to a completely different role! (Goodness me, they’re demanding job flexibility!)

    2) Another colleague is just being made redundant! (Oh, a bit like thousands in the private sector and totally unlike Powys CC who have a no-redundancy policy which means that they’ve created jobs but now can’t get rid of them to save money, so taxpayers pick up the tab for that piece of inefficiency.)

    3) The redundancy package won’t pay off the (newly-acquired) mortgage. (!?!?!, why should it, it’s just a payment to cushion the transition into a new job, it’s not a payment to buy your house and then go onto jobseeker’s allowance at the expense of the taxpayer.)

    4) Cited cost isn’t just redundancy payments? Well, only if the Star’s report is wrong. It says quite clearly that the amount is to cover redundancy payments and pension top-ups.

    5) “A colleague will be missed and didn’t WANT to leave but was MADE to leave.” Well, I suppose all those redundant workers in the private sector won’t be missed, wanted to leave, but weren’t made to leave.

    6) “Advertising for temporary posts to fill the gaps.” What? Why don’t they ask those colleagues who are MADE to leave, to fill them instead, and save taxpayers a load of redundancy money and other money involved in finding people. How nice! An employee actually taking on more people, (to fill posts that they’ve just paid people to leave.)

    7) “Cost is for for the reorganisation of the council and the the advertising for temporary posts to fill gaps, the advertising for posts that have become permanent, communication and meetings on all of these changes and updates and whatever else has needed to be done to implement the new structure.” – which the relevant people advised was done to save cost! How nice – creation of temporary jobs, then creation of permanent jobs. In short – make people redundant, and then employ people to take their place. (Wonder how many workers made redundant will manage to pay off their mortgages before being taken back into exactly the same jobs again.)

    I DO accept that there are people working in the council who strive to give service and are lowly paid, but from the comments made by Amber, it’s clear to see that there’s a world’s difference in attitudes of the public sector compared to the private sector. As it carries on all the way to the top, one wonders just how much of the cost mentioned would have occurred if the same project was being implemented in a private company.

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  16. 16
    Amber

    Andy – Obviously you have some deep rooted grudge against the public sector but I imagine you probably earn more in your job – providing you have one – than anyone I work with.

    Yet I know the first people to complain when services disappear will be the people complaining about greed now.

    For Andy’s benefit I’ll say it again.

    The bulk of that money is not going near anyone’s pockets. It’s all expenditure on recruitment and advertising for recruitment as opposed to the laid off staff.

    The 182 laid off staff are laid off staff, also. There are hundreds of other staff who are being relocated and these are not included in those figures.

    However there are *rules* associated with LG new contracts.

    Jobs have to be advertised from temporary to permanent even if there is someone currently filling the role.

    And there is a restriction time on being able to get another council job after receiving redundancy pay – those people are NOT eligible for any of the new posts being created as a part of their agreement.

    I’d advise checking your facts next time before saying I’m the one in cuckoo land. I don’t think someone who loses £200/month of a 11k/year salary on tax/pension/NI/etc is likely to be out of touch with financial reality, now do you??

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  17. 17
    Amber

    Additionally:
    <>

    The HOUSE is newly acquired. The mortgage is transferred. I’m not talking about a brand new one being paid off but the remains of her old one. Sorry for not being clearer. The colleague in question has more than 20 years long service and a lot of overtime t’boot. She’s probably the last person who expected this to come at this point in her career.

    As I said above, all council jobs have to be advertised. This is council policy, as is the filling in of a specific application form rather than submitting a CV to apply for a job. I don’t know if it is right or wrong doing it that way. But that is how it works.

    My point wasn’t that the council is right or wrong in all of this. That’s an entirely different debate that I want no part in. My point is simply that council staff are always criticised for being overpaid and that’s not the case at all. (I wish it was. I’d like a nice holiday abroad…)

    I don’t know what the star was reporting on or which departments it was talking about. As I said in my original post, I only know that it does not apply to the department in which I work.

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  18. 18
    SK

    Hear, hear Amber. Nice to hear from someone who is living in the real world and not the people who spend their time knocking hard working government employees without having a clue what they do.

    I notice the local council employee can also type coherently, unlike regular contributor Andrew Finch whose appears to have little grasp of spelling or grammar.

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  19. 19
    bluenose

    Amber….With all these cuts to your department shouldn’t you be doing some work? I think being made redundant shouldn’t be your worry, but being sacked for wasting time, maybe?

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  20. 20
    Rob

    The Stars sums don’t seem to add up – having checked the councils website
    http://www.shrewsbury.gov.uk/public/council/committees/cabinet/2009-01-26/revenue+budget+2009-10.pdf
    it seems the redundancy is £5.5 million, and if you take Shrewsbury Borough Councils example and the other Chief Executives are getting about £250,000 pay offs that leaves £4 million between the rest – still a good pay off I grant you but not so different from the private sector (and it’s the private sector ‘pigs’ who have got us in the current economic mess with the bonus ‘troughs’ not local councils). What is good news though is that there is a wage saving of £5.9 million a year – easily outweighing the one off redundancy and extra pension costs, perhaps thats why the politicians are talking about no council tax increases – and that must be a first. I notice from the council web site that Shrewsburys redundancy costs are relatively high (about double) of the other district councils.

    And before anybody asks I’ve worked for the private and public sector, the private sector being more lucrative but less secure and the public sector being less lucrative and untill recently more secure but there are a lot of councils laying off people now so everyones in the same sinking ship

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