Agenda item

DECLARATIONS OF INTERESTS

Councillors Cormack, Dean and Fletcher declared interests in relation to the following item of business by virtue of their membership of the Appeals Committee and left the meeting prior to its consideration.

Depute Provost Dunbar and Councillors Crockett, Farquharson, Laing, McCaig and John West also declared interests by virtue of their membership of the Appeals Committee but chose to remain in the meeting.

Councillor McDonald declared an interest by virtue of having close friends and family members who were employed by the Council but considered that the nature of his interest did not require him to leave the meeting.

Councillor Young declared an interest as a member of Unite. Councillors Kevin Stewart and Yuill declared interests as members of Unison. None of these members considered that the nature of their interests required them to leave the meeting.

With reference to Article 1 of the minute of meeting of the Finance and Resources Committee of 2^nd December 2010, the Council had before it a report by the Director of Corporate Governance, which had been referred simpliciter by that Committee, which outlined the options to achieve the anticipated required workforce reduction by either voluntary or compulsory arrangements, and sought a decision on which of these options would apply.

The report provided an overview of the progress to date in terms of the staffing implications in the first year of the Council’s Business Plan 2011/12 to 2015/16. The report stated that in the first year, in order to achieve the required level of savings, the main implications would be to stop/reduce services - from year two and beyond some of the benefits of the transformational and efficiency options would begin to accrue.

The report then set out the following options:-

Option 1 - compulsory redundancy only. This option would not involve any volunteering, and the Redundancy Selection Criteria that were currently being consulted on, following the Section 188 notification, would be applied.

Option 2 - invite and consider voluntary expressions of interest in the first instance. This option was similar to the arrangements the Council had operated for the previous two years. The aim would be to mitigate the number of compulsory dismissals which was a statutory duty.

The report highlighted the advantages and disadvantages associated with each option and summarised the consequential financial implications.

The report recommended:-

that the Finance and Resources Committee -

(a)              note the actions taken to date arising from the staffing implications of the first year of the five year costed Business Plan as outlined in the report; and

(b)              determine from the two options detailed in the report whether to undertake the required staffing reduction exercise by applying only compulsory redundancy arrangements to any dismissals required, or by inviting and considering expressions of interest in voluntary severance/early retirement (from the workforce) in the first instance.

Councillor Graham moved, seconded by Councillor Crockett:-

That the Council approve option 2 contained within the report - to invite and consider voluntary expressions of interest in the first instance.

Councillor Kevin Stewart moved as an amendment, seconded by Councillor John Stewart:-

            That the Council:-

(a)          note the actions taken to date arising from the staffing implications of the first year of the five year costed Business Plan as outlined in the report;

(b)          enter into negotiations with the entire workforce regarding the possibility of a 5% pay reduction for staff earning over £21,000, to a minimum of £21,000, pro rata;

(c)          note that if the workforce agreed to the proposal, the Council would use the savings generated to fund a round of voluntary severance/early retirement, with a view to avoiding compulsory redundancies; and

(d)          note that if the workforce did not agree to the proposal, the Council would apply only compulsory redundancy arrangements.

On a division, there voted:-

For the motion  (10)  -  Councillors Adam, Allan, Collie, Cooney, Crockett, Graham, Hunter, Ironside, Laing and Young.

For the amendment  (28)  -  Lord Provost Peter Stephen; Depute Provost Dunbar; and Councillors Boulton, Clark, Corall, Cormie, Donnelly, Farquharson, Greig, Jaffrey, Kiddie, Leslie, McCaig, McDonald, Malone, May, Noble, Penny, Reynolds, Robertson, Jennifer Stewart, John Stewart, Kevin Stewart, Wendy Stuart, John West, Kirsty West, Wisely and Yuill.

Absent from the division  (5)  -  Councillors Cassie, Cormack, Dean, Fletcher and Milne.

The Council resolved:-

to adopt the amendment.

- PETER STEPHEN, Lord Provost.