Leader slams fire-rehire ‘nonsense’

Oldham Council leader Jim McMahon has hit back in a row over the possibility of firing and rehiring council workers in a bid to cut costs.

Shadow Cabinet member Lynne Thompson claims Councillor McMahon dropped the bombshell during a scrutiny committee meeting last week. She said he suggested it was possible to “dismiss and re-engage” staff in a bid to save money. Councillor McMahon has since dismissed the option as “nonsense.” The Chronicle revealed in September how 400 jobs are set to be axed as the local authority attempts to find £24million in savings for their 2012-13 budget.

Liberal Democrat Councillor Thompson, also Shadow Cabinet member for finance and human resources, said: “I could not believe my ears — a trade unionist and leading Labour politician saying he was prepared to sack and re-engage workers to reduce their sick pay.

In a direct rebuttal, Labour’s Councillor McMahon said: “Councillor Thompson either has a very poor memory or is deliberately trying to mislead our workforce at a time when most people are worried about their jobs.”

The authority is reviewing changes to employee terms and conditions, which it claims could save around £1.5million a year, in an attempt to reduce the number of compulsory redundancies. A consultation is taking place with the public, staff and unions. The result will be in the final budget proposals in February, 2012.

The extreme scenario came to light when Councillor Thompson raised concerns about a proposal to cease paying sick pay for the first three days of illness.

Councillor Thompson claims this will have a “disproportionate impact” on low-paid staff.