Newspaper article Evening Chronicle (Newcastle, England)

It's the "Bloodbath of the Top Brass''." Town Hall Cull of Top Paid Executives Revealed

Newspaper article Evening Chronicle (Newcastle, England)

It's the "Bloodbath of the Top Brass''." Town Hall Cull of Top Paid Executives Revealed

Article excerpt

A CULL of highly paid managers has rocked a Tyneside town hall.

More than half the senior management team will lose their jobs while others face pay cuts of up to PS10,000 a year.

One insider described the move at Newcastle City Council as a "bloodbath of the top brass''.

Around 36 highly-paid posts will disappear under the restructuring plan and many managers are facing redundancy. It will save the council PS1.5m a year and the money will be used to support services and fund a scheme to raise wages for lower paid staff.

Under the shake up, 64 management jobs will be axed and replaced with 28 new posts.

Managers can apply for the new jobs, many at lower salaries. Those who are unsuccessful will face redundancy unless redeployed.

The council's Labour leader, Nick Forbes, said he is determined to drive down management costs and improve efficiency.

But some managers are unhappy at the prospect of pay cuts and in some cases taking jobs with less seniority.

A handful could benefit with pay rises and more responsibility while others could stay the same but one source said: "There will be a lot more losers than winners."

Another said: "There's a lot of discontent.'' About half the savings will be used to fund Labour's "living wage'' scheme under which low paid workers earn at least PS7.20 an hour compared with the national minimum of PS6.19.

The rest will help cushion the impact on services of budget cuts totaling PS100m over three years.

Details of the proposals are revealed in a confidential report from chief executive Pat Ritchie.

The re-structuring affects all senior managers below the level of the executive team, which has already been slimmed down.

Instead of three executive directors and three directors, headed by Ms Ritchie, there are now five directors.

The chief executive's salary was cut by 10% before Ms Ritchie joined the council and she was employed on around PS150,000 a year. …

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