Merthyr council considers 'sack-and-take-back' pay move
Merthyr council backs down over sackings to save money
(about 4 hours later)
Staff at Merthyr Tydfil council could be dismissed and re-employed on lower pay to save money.
A council has backed down over plans to dismiss and re-employ council staff on lower pay to save money.
If there is no agreement on pay cuts of up to 3%, the authority could begin dismissing 1,254 staff just before Christmas, offering new contracts on the reduced terms.
Merthyr Tydfil council bosses wanted workers to accept a pay cut of up to 3%, as recommended in a report, but they refused.
The GMB union called the move "shocking". The council said it had a legal duty to balance its budget.
Consequently, the authority threatened to dismiss 1,254 staff at Christmas and offer new contracts on reduced terms.
A special meeting will consider the proposal on Wednesday.
But on Wednesday that was withdrawn and a new report into the matter will now be carried out.
The council, which employs about 2,880 staff in total, is facing a budget deficit of £930,000 in the next financial year and the report warns it could grow to £5.8m by 2017/18.
The GMB union had called the plan "shocking" but the council, which employs 2,880 staff, said it had a legal duty to balance its budget.
Merthyr is facing a budget deficit of £930,000 in the next financial year and the report warns it could grow to £5.8m by 2017/18.
Welsh government funding for the council is being cut by 2.6% next year.
Welsh government funding for the council is being cut by 2.6% next year.
Dismissal notices
'Horrid task'
The council is looking at staff employment terms as one way of cutting costs.
The proposal did not involve teachers or school support workers.
A report recommended the authority should try to reach an agreement on pay cuts with unions, which would then ballot their members.
Options include a collective agreement with unions on a three-year pay cut deal.
But if no deal is struck by 21 December, it is proposed Merthyr's chief executive would be given the power to send out the dismissal notices.
It is expected the new contracts would include permanent pay cuts. Any reductions in pay or hours would also hit pensions.
Union leaders say the move would break Merthyr Tydfil from a national joint council agreement.
The proposal does not involve teachers or school support workers.
Unequivocal opposition
Mike Colley, Unison's regional organiser, said members were "unequivocally opposed" and would fight the plans every step of the way.
"Local government workers have already experienced a real term pay loss of 20% since 2010 and now they are being expected to plug the financial gap further through these unfair proposals," said Mr Colley.
"Merthyr council has already seen a loss of 100 jobs in the last year. The demand on services has not reduced though, so instead staff are being expected to deliver more and these plans would mean that they are doing so for even less money."
Merthyr council leader Brendan Toomey said the authority had a legal obligation to have a balanced budget at the end of each financial year.
"With the recent announcement from Welsh government of yet again another reduction to our budget, we have no alternative than to consider going down this route," he said.
"Unfortunately, even by reconfiguring and in some areas cutting some of our services completely, this just isn't enough and we are now at the stage where we have to dig deeper to try and find these savings from other areas."
The Welsh government said decisions on staffing were matters for local authorities.
The Welsh government said decisions on staffing were matters for local authorities.
"Funding reductions do not necessarily mean withdrawing services or making redundancies," a spokesperson said.
In a statement, leader of Merthyr Tydfil council Brendan Toomey said the proposal was not a formal pay offer and subject to full consultation.
He went on to say it was not the council's fault it was in this situation.
"Unfortunately, no matter what we do, it is going to affect somebody," said Mr Toomey.
"None of us want to do this, it's a horrid task, but we have to balance our books somehow and this is not in any way a reflection on our staff who work extremely hard day in day out across the county borough."
