11/07/2011
Southampton council cuts pay while piling £4.2m into reserves

Figures released by UNISON today (11 July) reveal that Southampton City Council is claiming it is being forced to impose a pay cut on its workforce due to a lack of resources. At the same time the council is telling the Government it expects to pile more than £4m into its reserves. The council told the Government in March that it expected its reserves to have risen by £4.2m from 1 April 2011, compared with the previous year. Today council workers are striking over plans to sack staff who refuse to accept inferior jobs and pay cuts.According to the statement of accounts, the council added £2.940m to reserves in 2008/9 and £4.533m in 2009/10. A leaked council report shows that the council plans to axe a quarter of the workforce, at an expense to taxpayers of £15m. Hundreds of Southampton workers have taken action over the last six weeks, including refuse collectors and social workers in response to the planned imposition of a pay cut. From today (11 July) port health officers will join the strike. They provide health protection within Southampton Port and Oil refinery, through inspection and certification of cruise liners, containers and oil tankers. Dave Prentis, UNISON’s General Secretary, said:“The council has painted a bleak picture to employees, at the same time as giving the Government figures showing they expect the reserves to rocket. “Pay cuts and job losses will pile misery on to thousands of council workers and their families, at a time of rising inflation. It is clear that these punitive measures are just not necessary.“We are calling for the council to put a stop to these savage cuts.”Every year local authorities are required to provide detailed information to the Department of Communities and Local Government about their budgets, which estimate the levels of their reserves.UNISON has examined the 2010 and 2011 RA returns supplied by Southampton Council, which show:· Estimated unallocated financial reserves increased by £2,326,000· Estimated earmarked other financial reserves increased by £1,870,000When Southampton City Council set its budget this year (2011/12) it was based on the assumption that the unallocated financial reserves were falling – the figures suggets a different picture. (Extract from the 2011/12 Southampton City Council Budget Report - ‘The original revenue estimates for 2010/11 assumed a general draw from balances of just under £3.5m. After reflecting the revised forecast position from Month 9, this draw reduces by £1.1m, to just under £2.4m’.)