Outrage over council's £5m redundancy package

Jul 3 2009 by Lisa Boyle

CASH strapped South Ayrshire Council have forked out more than £5 million in redundancy deals.

The bumper amount was spent getting rid of 145 employees in just three years.

Information obtained through the Freedom of Information act shows that the cash includes £2.4 million in compensation to the pension fund.

The council must make up the shortfall in the Strathclyde pension fund when they pay off an employee younger than 60.

A further £2.6 million went straight into the pockets of the staff who were paid off.

That includes former chief executive Tom Cairns who walked away with a £250,000 pay off last year.

Mr Cairns was awarded the package despite admitting he wasn’t up to the job.

The revelation has sparked outrage. Cathy Jamieson MSP says the money could have been spent on public services.

She said: “This is a significant amount of money for any council budget to be paying on redundancies.

“I would assume that most of these redundancies have been directors and heads of service.

“There has been a number of re-organisation and re-structuring within the council. But it’s questionable if the public feel they are getting any benefit from that.

“I’m concerned about the vastly increased redundancy packages for senior officials when the public want every possible penny channelled into local services.”

Council leader Hugh Hunter said the authority has a legal obligation to stump up the cash.

He explained: “Modernisation and workforce planning is part and parcel of all large organisations.

“In recent years South Ayrshire Council, in common with local authorities the length and breadth of Scotland, has modernised structures to facilitate the delivery of streamlined, efficient services.

“Employees have legal rights. All payments made in respect of severance were in line with the council’s managing change policy and reflect the need for South Ayrshire Council to position itself for the future.”