Issue - meetings

This paper provides a mid-year update to the Resources Scrutiny Panel on the progress made to restructure and start to re-focus the Council and to realise the required savings.

Ashley Ayre – Chief Executive and Cherry Bennett – Head of Human Resources and Organisational Development, introduced the report which covered the following: Redundancies and Restructuring; Senior Management Restructure; Service Re-Design and Staffing Savings; Cessation and contracting out; Health and Care Integration; Organisational re-design and transformation and Partnerships and Savings Monitoring.

Panel members asked the following questions and made the following points:

Councillor Furse asked if what was expected from WECA was realistic. The Chief Executive explained that work was being done regarding WECA’s role on integrated transport and what form this will take. Affected staff with be consulted as some of the Councils role transfers to WECA. There will be an effective set up before any services are transferred.

Responding to a query from Councillor Furse, the officer explained that the annual saving and cost of severance are two separate things and the gap is funded by a reserve account specifically ear marked for this purpose.

Councillor Rayment asked about the Senior Restructuring and the redundancy packages. The Chief Executive explained that two of the Strategic Directors had expressed an interest in voluntary redundancy – this enabled an internal promotion. He explained his belief that internal promotions are positive for the organisation.

Councillor Rayment asked for a breakdown of the voluntary and compulsory redundancies and asked if more redundancies are likely to be compulsory going forwards. The officer stated that the majority so far had been voluntary as would be expected in the first tranche but there may be more that are compulsory going forwards. She stated that she would send the exact figures to Panel members.

Councillor Rayment asked if more low income staff would be made redundant. The officers explained that the proposition behind the restructuring was that it should be proportionate over the whole organisation. It was also explained that it may not need to be 300 FTE now as other savings had been made and vacancies not filled.

Councillor Becker asked if redundancies created more burden on the Pension fund. The Chief Executive explained that this was a complex area. He explained that packages will be considered but the Council must pay the ‘strain on the fund’ in line with pension regulations. The Cabinet Member for Finance and Efficiency, Councillor Charles Gerrish added that pensions are paid by the Pension Fund which the Council contributes to.