850 jobs face Council axe

Date published: 19 September 2008


Unions were warned of a jobs bombshell today amid worrying news that Oldham Council plans to cut 850 posts — almost a fifth of the civic workforce.

Compulsory redundancies are being considered. The news has been branded as a disgrace by opposition Labour leader, Councillor Jim McMahon.

The 850 jobs would come from the council’s central workforce of nearly 5,000. Schools are not affected.

Oldham Council’s Lib-Dem leader Howard Sykes said the news would concern many staff.

He added: “The key word here is potential — and that is precisely all it is at this early stage of the budget planning process.

“The fact is that the council has to find £17.3 million of savings to balance next year’s budget. Staffing costs are a big part of our overall budget, so it is inevitable we should explore the potential for savings.”

Other parts of the package include reducing the numbers of council buildings and more efficiency savings.

Cabinet member for finance and resources, Lynne Thompson, said the council will take the process forward in a spirit of trust and partnership with the unions.

But Councillor McMahon — who drew up last year’s Labour budget which resulted in a zero council tax increase — said: “This figure is shocking — an absolute disgrace.

“There is no way you can take that number of people out of the system without having a serious impact upon the quality of services upon which we rely.

“It is clear the Liberals do not care about the damage their policies will have upon local lives and upon Oldham’s economy.

“Their priority is flowers and hanging baskets instead of employment opportunities.

“The anticipated budget gap, under the previous Labour council, was projected to be £14m but, following the new Liberal Democrat administration’s changes, this grew to £17.3m. Although not confirmed, it is thought the actual deficit will be well over £20m.”

GMB union convenor Jim McDermott was at the meeting yesterday when legal negotiations started, along with representatives from Unison and the TGWU/Unite union.

He said: “We are devastated, disappointed and angry. It is the same every year. We have identified a vast amount of vacant posts — jobs which have been empty for more than 12 months. There has also been a massive increase in consultants, interims and agency workers. We want these drastically reduced. There are so many duplications in departments such as communications and performance management. Since we have decentralised, the heads of each service have created their own little kingdoms.”