Shropshire Council could avoid pay cut

UNISON figures show that Shropshire Council has an alternative to sacking 6,500 of its staff and re-hiring them with a pay cut. The Conservative council has sent letters to all 6,500 of its staff saying that they will be dismissed on September 30 and re-hired the next day - if they agree to a 5.4% pay cut and changes to sick pay. Shropshire Council claims it needs to save £76m by 2013/14 and is demanding that £7m is found by workers taking a pay cut of 2.7%, from October 2011, and 2.7%, from October 2012. This is at a time when council workers have had their pay frozen for the last 2 years. The UKs largest union which is currently balloting members on industrial action has revealed an alternative approach the council should use to protect services and workers. Dave Prentis, UNISONs General Secretary, said: The council is letting hardworking council staff and the people who rely on vital local services take a hit with these cuts, when there is a viable alternative. Plans to force staff to accept another huge cut, or lose their jobs, will see many families struggle to put food on the table and keep a roof over their heads.Our plan would save the devastating impact of the pay cut - the council must not press on with plans to cut pay without considering our figures.UNISONs alternative budget for Shropshire: Shropshires council tax income grew by almost £1.3m this year (2011/12) - not because council tax went up but because there were more council taxpayers. However, Shropshire Council is assuming no growth in the taxbase between now and 2014/15.Shropshire is a new unitary authority and wants to equalise council tax levels downwards. UNISON has identified that it will cost £1.6m. A fairer approach would be for the council tax equalisation process to raise the same amount of money. The council thought it was going to get £1m from the New Homes Bonus. In fact it received nearly £1.8m, this and the extra money it will get from 2012 onwards, does not appear to be budgeted for.The council is assuming that it will freeze Council Tax until 2014/15. If Council Tax increased by just 1.5% per annum - less than 32p a week for 66% of council taxpayers - Shropshire would have an extra £5.5m in 2013/14.