Efforts to reduce the number of top-tier Angus Council staff will cost more than £200,000, it has emerged.
A second phase of early retirement and voluntary redundancy packages has been unanimously approved by a meeting of the full council.
Chief executive Richard Stiff’s report on “developing the council’s management structure” began life as a private item on the meeting’s agenda.
Mr Stiff recommended agreement of reshuffling the People and Resources directorates, and the use of early retirement and voluntary redundancy procedures (ER/VR) to bring the changes about.
He stated: “Staff affected and trade unions will continue to be involved in discussions about these proposals and that the wider staff team will be kept informed of developments.”
Local government employment union Unison made no comment. Although the position can still change both the council and one employee have yet to confirm their position on a legally binding basis the intentions of the officers offered packages are now known.
Based on this indication of intention from the departments’ employees, Mr Stiff said the upfront costs of ER/VR from this next part of the senior management restructure are estimated to be £213,000.
These costs are provisional until the council and the employees agree these departures.
Mr Stiff added: “There may be further costs associated with taking forward this element of the phase two proposals (for example preserved salaries) but these cannot be estimated at this stage until decisions on matching and recruitment are known.”
The one-off costs of £213,000 payable could be met from funding available in reserves and in budget contingencies for this tax year.
Mr Stiff’s report advised the council of the recommendations of the Member/Officer Working Group (MOG) on management structure in respect of phase two of the restructuring process and seeks approval for new tier three structures in the People and Resources directorates.
The report also sets out the broad principles and processes for the delivery of this final element of the council’s senior management restructure.
Phase one, the recruitment of strategic directors, is complete and the three posts at this level were filled in January.
In respect of the new Resources directorate, the structure will create three new heads of service roles on fixed salary points £84,045, but with two post holders receiving two additional increments to £87,474 in respect of the statutory roles of monitoring officer and Section 95 officer.
Finance spokesman councillor Alex King spoke of the changing challenges the council must adapt to as resources continue to strain in a hostile economic climate.
He said: “Although our financial results for last year leave us in a strong financial position, we’re projecting that almost £30 million of savings could be needed over the next four years.
“Reductions on this scale will mean big changes to how we provide services. We’ll be doing all we can to deliver more efficiencies and minimise the impact on front line services.”
The council’s policy is that ER/VR will only usually be granted if the savings from doing so will more than offset the costs when calculated over a five-year period.
However, the proposals for ER/VR in People and Resources, which will help deliver the structures proposed in the report, would not meet this policy requirement if looked at in isolation.
But Mr Stiff added that the total costs for phase one and two restructuring will balance out over five years.