Inverclyde Council to axe jobs in bid to save £28m

A MASSIVE shake-up of Inverclyde Council will see jobs axed and the management structure radically revamped as bosses attempt to save £28 million.

Chief executive John Mundell will stay in charge, but proposals have been put forward which would see one £90,000-a-year corporate director post disappear completely.

Mr Mundell told the Tele: “It would be wrong at this early stage to speculate about the number of jobs that could be lost, but there can be no doubt that in four years’ time we will have less employees.

“It is inevitable that, despite our best efforts, savings on this scale will impact on employees at every level of the organisation, the services we deliver and, potentially, the range of services available to our customers.”

Under the new management structure, there would be four directors instead of the current five.

The new set-up would see one run education services, another take charge of regeneration and the third director would be responsible for ‘improvement and resources’.

A fourth director would run health and social work services – which would be brought under joint control of the council and NHS Greater Glasgow and Clyde, in what would be a major change to the way services are currently organised.

Meanwhile, a number of other high-earning middle management staff could also leave as part of the reshuffle, in a bid to save cash.

In recent weeks, Mr Mundell has briefed councillors, senior managers and unions on the financial position, and a bulletin was issued to all employees to advise them of the challenges faced by the local authority.

Mr Mundell said: “In over 35 years in local government, I have never experienced as difficult a financial scenario with such serious potential consequences for employees, services and customers. No service can or will remain untouched.

“The council agreed a two-year budget in February 2009 which will cover the period from 1 April 2009 to 31 March 2011.

“Councillors were also advised in June of this year when they approved the council’s revised financial strategy that the anticipated funding gap was in excess of £20m.

“I believe we are in a stronger position than most other local authorities, which are only now trying to agree a budget for financial year 2010/2011.

“But that does not change the fact that, over the next 12 months, we will have to identify savings of around £28 million for the period from 1 April 2011 to 31 March 2014.

“I appreciate this scenario will cause concern and unease for employees at all levels across the council.

“That is not my intention, but I have to be open and honest regarding the significant challenges we all face over the next few years.”