Adelaide City Council expected to spend $14 million cutting 150 jobs, to save $20 million in budget
Adelaide City Council is widely tipped to get rid of 150 jobs as part of an attempt to save $20 million. It already has allocated $14 million to pay for redundancy packages.
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Adelaide City Council is planning to spend $14 million on redundancy packages, prompting speculation at least 150 staff will lose their jobs.
Elected members will meet next week to approve a $237 million budget which aims to achieve $20 million in operational savings — mostly by reducing the council’s 800-strong workforce.
The annual business plan to be endorsed on Thursday forecasts the council’s total wages bill for this financial year will drop from $77.3 million to $64.9 million — a total of $12.4 million.
The budget — finalised after community consultation — includes “potential one-off structural realignment costs of $14 million that may be required to achieve the ongoing efficiencies within operational services”.
Dozens of casual and full-time council employees — including several senior managers — already have been terminated since the COVID-19 pandemic broke out in March, wreaking havoc on the council’s finances.
Latest financial reports prepared by staff have estimated $22 million since has been lost in revenue from its carparks, on-street parking, rates on commercial properties, the closed Adelaide Aquatic Centre and other entities such as the Central Market.
Support measures such as rate relief for businesses hit by the downturn in business across the Adelaide CBD have cost the council another $5 million.
The Australian Services Union (ASU) has urged the council not to cut jobs as the state continues to struggle with the ongoing economic impact of COVID-19.
The union took legal action against the council when it stood down most of its staff at the beginning of the pandemic by asking them to take annual leave while making others work at home as the city went into shutdown.
Assistant Secretary Scott Cowen, who has been meeting with council chief executive Mark Goldstone to discuss the pending redundancies, said it was “not the time for austerity politics”.
Mr Cowen said the proposal to cut $20 million from the council’s budget “could not come at a worse time”.
“Our members are reporting that between 150 and 200 jobs may be cut by council,” he said. “Should this come to fruition these cuts will have a devastating impact not only on our members but the community they serve.
“We are seeing governments of all levels across the country recognise the need to be investing in services and ensuring no one is left behind as we grapple with the health and economic impacts of the COVID-19 pandemic.”
Mr Cowen said the job cuts were being proposed at a time when council staff “have already been subject to years of organisational reviews and efficiency targets”.
“These cuts, if implemented, will not be able to be achieved without a significant impact on the services delivered by council and will no doubt hurt those in our community that can least afford it,” he said.
Deputy Lord Mayor Alexander Hyde, who successfully pushed for the budget cut, said the coronavirus pandemic had “put into sharp focus” how the council delivered services for its business and residential communities.
“The $20 million in operational savings I’ve requested we find is the biggest efficiency drive in our 180-year history,” he said.
“Our primary goal is to deliver for our ratepayers, many of whom are doing it really tough.
“By finding savings in our day-to-day expenses we stand the best chance of delivering city-shaping projects like the Central Market Arcade redevelopment and developing the old LeCornu site.
“Finding savings also means we can consider waiving rates, particularly for small and family businesses who are struggling.”
Mr Goldstone said like other organisations, the council “is not immune to the enormous challenges we are all facing as a community”.
“We need to focus our efforts, and our services, where they can drive the most public value,” he said.
Mr Goldstone confirmed 20 positions already had become redundant, with more to follow.
“Going forward, there is no specific number or target proposed for positions impacted,” he said.
Mr Goldstone said it was unfortunate but, like many other organisations, “we do need to make some hard decisions that impact our people and this is regrettable”.