Shropshire Council staff face pay cut or up to 500 job losses

Staff at Shropshire Council will be asked to take a pay cut or risk facing the prospect of the authority cutting up to 500 jobs, bosses said today.

Kim Ryley, chief executive of Shropshire Council, said the council had put forward measures as part of changes to employee terms and conditions of employment.

He said by all staff, including senior management, taking a 5.4 per cent pay cut, it would help save £7 million in the next three years.

A report will be considered by the authority's cabinet tomorrow.

Mr Ryley said bosses had initially planned to reduce the standard working week from 37 hours to 35 and adjusting pay accordingly, but had met with resistance.

He said: "We have tried to find ways to cut costs without major job losses.

He added: "One way we thought we could apply it is by simply asking everyone to take a more than five cent pay cut. The only exception would be those who earn less than £13,000 a year."

Mr Ryley said the council wanted to introduce more flexible working to allow staff cover between 7am to 7pm Monday to Friday and 8am to 1pm on Saturdays.

Mr Ryley said if there was no agreement with unions on changes by the meeting on June 23, permission will be sought from council to terminate employment of all staff, and to re-engage them on the revised terms.