Ministers say compulsory redundancies are being considered for States workers if a pay freeze and voluntary redundancy scheme fail to save £60 million.
They are targeting major savings from the enormous cost of public sector staff, who currently cost Islanders just over £1 million per day.
Yesterday it was revealed that there would “very probably” be compulsory redundancies from the States workforce, as ministers axe jobs to balance the books against the backdrop of a £130 million deficit.
And a briefing document also revealed that there would be “serious consideration about which services to cease, reduce or outsource."
Treasury Minister Alan Maclean, who has inherited the job of dealing with the deficit after getting the job of 'Chancellor' in November, said that they were having to consider the biggest changes in the history of the public sector.
He said: “For the first time in a long time, nothing is being ruled out, including compulsory redundancies, but that is a last option.”
The Senator also warned that without restraint on pay rises for States staff, things would get worse. Asked if there was any prospect for States staff of pay rises above RPI – anything less is a pay cut in real terms – he said: “There is clearly going to have to be restraint on pay. I cannot see a situation where there is going to be pay awards anywhere near those numbers.”
But he said that there could also be savings without having to resort to putting people out of work or reducing pay. The States currently see a staff turnover of 9% per year – ministers are hoping that better vacancy management, and considering whether each vacant post actually needs to be filled, could also yield results.
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