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Redundancies set to cost billions

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Published Date: 31 July 2010
THE cost of implementing the 50,000 redundancies outlined in Crawford Beveridge's report into Scotland's economic future could run into billions of pounds, the document suggests.
Mr Beveridge's report published this week estimates that the cost of giving voluntary redundancy to the average public sector worker is £56,000 - double the average salary of £28,000.

Pressure groups last night expressed surprised at the generosit
y of the package and the cost to the public purse that large-scale redundancies would entail.

Hefty pay-offs could interfere with the government's desire to get rid of workers through natural wastage if people decide to hang on for a big leaving package.

A spokesman for the Taxpayers' Alliance said: "Not only do these payments look to be considerably more generous than those in the private sector, the accumulative cost threatens to make a real dent in public finances despite the fact the intention is supposed to be to save money."

He added: "Though it's regrettable that many people will be losing their jobs, it's important that the process isn't unnecessarily expensive and, at least in the short term, counterproductive".

The report's estimate of the package was based on recent civil service severance schemes that saw participants receive an average of £51,000. But some union officials said that it was highly unlikely that all redundant public sector workers would receive such a good pay-off.

Tommy Campbell of the Unite union questioned the figure, saying: "Very few people will end up with that kind of money. That sort of sum is got by senior managers who have been in the public sector for a long time. Your ordinary manual public sector worker is only likely to get a couple of thousand."



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  • Last Updated: 31 July 2010 12:15 AM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Scotland's economy
 
1

Robbierunciman,

Romney Marsh 31/07/2010 01:09:28
Another article built around press release from the 'taxpayers' alliance having a go at public sector workers pay and conditions. Surely there is someone better informed the newspaper could use?

If they are as concerned about the nation's finances as they say, perhaps they could campaign on 'rich people - who have not paid their fair share to society', I fear the answer would be no, otherwise they would not have the funds to support this organization and its badly researched nonsense - easily debunked by a visit to the civil service website.

2

drunken proffet,

Tassy 31/07/2010 08:35:09
Aye well, the Blessed Margaret streamlined the public sector in the 1980's. Expensive redundancies but the end result was a lean, mean, efficient machine. Her poll tax was to target the wealthy employed individuals who for a various number of reasons did not contribute to the council's coffers. A terrible implementation, I have no idea who she delegated to the job but he is no doubt in the House of Lords enjoying his pension. The violent repercussions and street marches were carried out by individuals who would not have paid it in the first place. Even the Communist Manifesto recommends taking from those who have and distributing to those in need.
3

lulach mac gille coemgain,

31/07/2010 09:43:08
North Sea oil should cover it !
4

Audrey Halliday,

31/07/2010 09:52:29
610,200 people are employed in Scotland’s public sector.

These figures are for Q1 2010.

As an average large organisations can expect to lose around 2% of employees due to natural wastage.

Over the five year period 31,510 people should leave anyway. The remaining 19,490 should be carefully sorted out as to their capabilities and the good ones should be kept.

Conversely the less than good ones should not benefit from over large redundancy payments of which many Scotsman readers will be aware of.

After this event and due to better communications, slicker technology and shared systems it is possible that the public sector workforce could be even lower than the predicted figures.

Which is a good thing as we should then have only the best people employed in the public sector, we will be economically fitter and the public/private sector can be run in a more harmonious way.

Particularly as it was acknowledged in the report that many public sector leaders and managers in Scotland have great skills, but they do not have the benefit of as much practical experience of diverse delivery models.

Tough times can make the cream rise

Finally I thought I read that they were going for natural wastage.

5

alanh,

ek 31/07/2010 16:49:10
what a badly researched pile of sensationalist poo this article is.

Does the "journalist" expect all council staff to receive 2 years severence pay when they will get maximum of 30 weeks pay thanks to the changes brought in by the last uk govt?

My boss , who has 40 years council time under his belt is having to take "voluntary" redundancy next month and they wont even be paying him the equivalant of 1 week per year of service.
They have "offerred" 30 weeks on a take it or leave it basis
6

roadlights,

glasgow 31/07/2010 20:14:33
I think these figures are wrong because if the majority of workers say in a local authority are low paid they will not be getting £51k so how much are people who will be getting this £51k getting paid now and what are they doing for it? This article needs to include information like this as otherwise it is just painting the wrong picture of what public sector workers are getting.

7

Robbierunciman,

Romney Marsh 31/07/2010 23:54:31
Maybe she has not noticed that it was not the public sector that undermined the UK economy - love to hear Audrey's ideas for sorting out the banks. the quality analysis suggests that she works for the TPA
8

Audrey Halliday,

01/08/2010 11:41:40
No I do not work for the TPA. I run a small company.

The banks rolled the little guys though they profit while we pay even more for their greed.

Though my last full paragraph, the contents of which you can read in the Independent Budget Review on page 46 which was written by Robert Black, the Auditor general for Scotland states that “public sector managers and leaders have great skills, but they do not have much practical experience…”

If you’re happy with this then fine, but I and many businesses owners are paying through the nose via our business rates for people to rain down legislation and box ticking exercises which is costly on both time and money who by the big bosses admission seem to lack certain skills that their English counterparts do possess.

Additionally the Tax Payers Alliance do a great job of revealing a lot of waste in the public sector, so I won’t bother mention the cost of the Parliament building with its stupendous one year warranty, nor the escalating cost of The Commonwealth Games or the fabulous job TIE are doing with the trams projects in Edinburgh.

There is a lot more , but its Sunday and I have work to do.
9

Ronnie Prince Charlie,

01/08/2010 13:30:00
3
lulach mac gille coemgain


simple minded does not go close to describing you.

 

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