SHOALHAVEN City Council’s new directors will get a pay rise.
This comes when council is saying the shakeup of directors and reduction in jobs is part of a cost-saving exercise.
According to general manager Russ Pigg, the average pay rise will be less than 10 per cent per position.
Council undertook a major cut of staff positions earlier this year with a reduction in directors from six to four. The number of section managers and other staff positions were also reduced with the aim of saving $2.85 million.
In the shakeup at least three directors have been made redundant or been replaced, while it is believed another three section managers have also been made redundant.
Shoalhaven general manager Russ Pigg confirmed that the new directors would be paid more on the recommendation of consultants Blackadder Associates, who undertook the staff restructure study.
“The consultant provided advice on what the market range should be for the four new positions compared to the previous six positions,” Mr Pigg said.
“It is true, the new positions have increased pay, however there is obviously a substantial financial saving by reducing to four positions.
“You must remember that six into four equals significant change and you would expect a larger portfolio of responsibilities per director.”
Although Mr Pigg would not say how much the pay increases would actually cost, he said the net saving was $322,000 per annum.
Mr Pigg said the consultants, Blackadder Associates, were paid less than the $150,000 threshold to do the initial implementation phase of the Transformation Program and therefore under the Local Government Act the work did not have to go to tender.
Mr Pigg also provided information on how the redundancy payouts worked under the Local Government (State) Award 2010 including how much notice of termination staff should be given and severance pay to employees made redundant.
It revealed that severance pay to staff was determined by the completed years of service, ranging anywhere from five weeks’ pay up to 34 weeks’ pay for anyone who has worked continually for council for 10 years or more.
Departing directors have their contract paid out, the equivalent of 38 weeks’ pay.
Mr Pigg refused to answer the question about how much the payouts to departing directors, section managers and other staff positions would actually cost and how the payments had been set up.
“I have referred them to the Information and Privacy Officer to consider as most of this is personnel information,” he said.