Leisure staff face job cuts and longer hours

OLDHAM Community Leisure staff are facing redundancies in a bid to save £500,000 because of council cuts.

Some workers at the organisation, which runs Oldham Council’s sports facilities, are having job reviews that are expected to lead to six redundancies.

And in a desperate bid to save cash, bosses are weighing up options including everyone taking a 5 per cent pay cut, the working week being extended to 40 hours to reduce cover or up to another six redundancies.

Chief executive Ian Kendall has written to staff to explain that the council’s £25 million budget blackhole means OCL’s operating subsidy is being reduced by up to 17 per cent, equating to £370,000.

But VAT increases, a reduction in vat exemption and fewer customers expected as residents have less disposable income means £500,000 needs to be slashed off the budget.

Mr Kendall said costs need to be reduced to be able to continue trading.

Around £100,000 has been saved by reviewing working practices and another £100,000 by increasing prices and reducing subsidies. Reducing wages is seen as a last resort and unions are balloting staff on the options.

In his letter, Mr Kendall tells staff that negotiations with the council over the subsidy are ongoing and the OCL board has been “vociferous” in objecting to the subsidy reduction.

He writes that the council “are in a ‘very dark’ place and I do not anticipate much relief from the proposed efficiencies.”

He adds: “Your management team are currently considering options to deal with what is a major challenge to the way in which sport and physical activity is delivered.”

A series of consultation meetings with staff will take place in the New Year. If a ballot approves then adopting a 40-hour week will start in April and then be reviewed later.

Mr Kendall points out that the efficiencies are less than similar organisations are making, with Rochdale having to save £900,000.

He adds: “It’s going to be challenging, but I have no doubt that with the responsible and mature attitude you have shown to date will provide the right solution.”

Mr Kendall told the Chronicle: “There’s still negotiations going on. These are very difficult times and we are expecting a bit of a decline in trade and we have to be prepared.

“OCL has been very successful with 60 new jobs and doubling the turnover in seven years but we have to look at every aspect of the business now.

“The proposal through the unions is to work 40 hours rather than the 37 contracted hours, which will save £100,000, which is a long way to what we need to save. Unions and staff have been very positive.”

He said the cold snap costs the organisation £10,000 a day and another month of snow would cause further difficulties.