Compulsory redundancy fears in Clackmannanshire

Compulsory redundancies could be on the way at Clackmannanshire Council.

The authority will meet tomorrow (Thursday) to discuss how to meet a budget gap of up to £3.5 million.

Enforced job cuts could be on the way after a poor response to pleas for staff to come forward for voluntary redundancy.

A report prepared for the meeting by the council’s chief executive Elaine McPherson and deputy chief executive Nikki Bridle proposes that compulsory redundancies be used as a‘last resort’to meeting the shortfall.

The report states:“In light of these (financial) issues and in order to progress a managed contraction of the organisation’s workforce, agrees that compulsory redundancy can be used as a last resort once alternative approaches to severance have been exhausted...”

The report adds that even if a raft of savings are made in the upcoming budget, such as management efficiencies and changing council policies, a gap of £3.5m would still need to be met, and leave the council’s reserves dangerously low.

It states:“The current level of uncommitted reserves above minimum level of three per cent (£2m) would not close the projected gap and if utilised to defray net expenditure, would leave the council below minimum reserve level and not able to provide a contribution from reserves in future years.” The take-up rate for voluntary redundancies has been around a third of what is needed to provide the proposed savings over the next financial year.

Officers conclude that the financial challenge facing the council is such that significant reductions in its workforce are required, and that changes to severance and redeployment policies are necessary.

The meeting of the council takes place at 10am at the Council Chambers in Kilncraigs.