Bundaberg Regional Council job cuts begin amid budget shortfalls

The first wave of job cuts at Bundaberg Regional Council has started as the organisations works to find savings to claw back a multimillion-dollar operating shortfall.

Bundaberg council increased rates by 4.89 per cent in $114.2 million budget to address deficit and still needs to make employee cuts.

More than 30 jobs have been slashed at Bundaberg Regional Council and more are on the way as the organisation works to rebalance its books after running at multimillion-dollar operating losses.

The initial stage of this review involved offering voluntary redundancies, with 31 employees opting to leave under the program.

In a statement on Monday, Bundaberg Regional Council CEO Rob Williams explained the need for cuts, citing ongoing and projected budget deficits.

“We have been open about our requirement to reduce expenditure and introduce operational efficiencies as a result of Council’s recent and projected operating deficits,” Mr Williams said.

“This triggered a review of Council’s organisational structure, which is one of a number of measures Council is actively considering to address its forecast financial cash flow challenges.”

In September it was revealed about 70 jobs were in jeopardy, with the Services Union indicating that most cuts will affect “non-front facing, white-collar workforce” positions within the council.

Services Union Local Government Lead Tom Rivers described the impending job losses as part of a “huge restructure” in a media release issued in September.

Mr Rivers said the council’s financial troubles stem from “poor financial decisions … including rate freezes and discounted rates over the last few years.”

This restructure follows a 4.89 per cent rate increase for homeowners introduced in July, aimed at bolstering the council’s financial position. In its 2022-23 annual report, the council reported a full-time equivalent workforce of 867 employees, underscoring the significant impact the planned cuts will have.

Department of Local Government data accompanying the release said the amount of the council’s operating budget spent on staff was well above neighbouring councils. It says 39 per cent of the Bundaberg council’s budget was spent on salaries, compared to 34.9 per cent at the Fraser Coast Regional Council, 35 per cent at Gympie Regional Council, and 32.7 per cent at Gladstone Regional Council.

The proposed restructure is geared towards “reducing expenses, delivering core Council business, increasing alignment of services, reducing duplication, maintaining service levels and a simplified leadership hierarchy,” Mr Williams said.

He said the council has planned a mix of options for those affected by the cuts, including redeployment, role redesign, and involuntary redundancy.

Mr Williams assured that “appropriate communications and supports are in place for impacted individuals and teams”.

Employees have until 22 November to provide feedback on the proposed changes, after which final decisions on the restructuring will be made.

“Organisational change can be an uncertain and challenging time,” Mr Williams said,

“Council is committed to minimising the impact on our employees.

“We have taken steps to keep employees informed throughout this process and to ensure they have access to the necessary resources and support.”