Few city staff lay-offs foreseen in short term

Press, 23 October 1989, Page 6

Few city staff lay-offs foreseen in short term

By

MICHAEL RENTOUL

Few redundancies in the shortterm will result from restructuring of the Christchurch City Council, the staff representative on the council transition committee, Mr Richard Budd, believes. While it was likely the new council would do less in-house work in future, much would depend on the attitude of tire elected council and city administration, he said. Mr Budd was the combined unions’ representative on the committee, which met for the last time on Thursday. He believed .management shared his view that the restructuring exercise was not merely about making the council “leaner

and meaner.” “We have yet to prove that we haven't been doing some things properly,” he said. The council had made no budgetary provision for redundancy payments for the year to March 31. In addition, an effective twoyear employment guarantee was provided to some staff under the Local Authorities (Employment Protection) Act, although Mr Budd noted that the settlement reduced over the two years. Fringe benefit tax payable by the council on redundancy payouts would increase the two-year salary entitlement for employees with more than five years service to three years, further increasing the cost of laying off staff.

Mr Budd was uncertain if corporatisation of city transport functions, likely under the Transport Law Reform Act No. 2, would increase the likelihood of lay-offs. More competition was likely for the council in some areas. But Mr Budd emphasised it was still “early days.” “In some ways,- amalgamation has taken place (from November 1) but restructuring is yet to begin,” he said. The City .Manager, Mr John Gray, had said he wanted to make as many staff appointments as possible before Christmas. Third-level managers, yet to be appointed, would decide on the structure of their departments.