Council restructure costs justified

Tauranga City Councillors have tried to justify the costs of the recently completed staff review that figures show has resulted in an increase of five council jobs.

When the long anticipated restructuring was announced last November, it was claimed the review would reduce TCC full time staff by 45 jobs.

Tauranga City Council CEO Garry Poole says the council restructure has saved money.

The report to council yesterday shows the process has instead resulted in the loss of 4.6 full time jobs at a saving of $309,636.

The process resulted in 38.3 positions being disestablished and 33.7 new positions being created, saving 4.6 jobs –but then a further 10 full time jobs were reinstated ‘post review'.

Chief executive Gary Poole says the review has saved $1.4 million in wages compared to the previous year.

Councillor Terry Molloy says the result is a council that is fit for purpose and can take its place in the wider Bay of Plenty

'That's the most important factor in all this,” says Terry

Between 2004/05 and 2011/12 TCC staff increased by 124 FTEs (Full Time Equivalent) roles.

The salary budget grew from $19.5million in 2004/05 to $37.5million in the 2012/13 year. In the current financial year the total remuneration budget increased by 3.6 per cent.

The review has cost $1.63million. The new positions created in the review have an average salary of $112,112 compared to the terminated positions of $106,731.

The council report states a saving of $548,955 in the document scanning project as it is scheduled to be completed by the end of January 2014.

Other savings claimed in the review dare being slammed by Tauranga accountant and council watcher Ian Stevenson who says the claimed half million dollar savings from the document scanning contract has no part in a staff review as they are short term contractors, and claiming $325,000 saving by attributing the wages to the council controlled organisations Bay Leisure and Events is deceptive.

'Huge costs have been incurred at ratepayer's expense and nothing has been achieved,” says Ian.

'A reasonable conclusion from that is that TCC staff have successfully achieved what they wanted; jobs remain, pay increases, business as usual.

'All of this illustrates clearly that TCC staff, officials and others have achieved nothing from this whole exercise except to have spent $1.66m and some.”

He says the result of the review indicates the need for a 'real” Independent Staff Audit where TCC staff have no say in it and the tasks undertaken by staff are rationalised.

14 comments

38.3 jobs

Posted on 25-06-2013 15:43 | By Jimmy

i feel sorry for the poor "little person" who obviously had their job cut. and then replace by 2 more "little people". How the hell do you get "point" anything of a job. and 38.3-33.7+10=5.4 MORE jobs...... not 4.6 less. at least thats what my primary school level mathematics taught me


Whodunnit?

Posted on 25-06-2013 16:35 | By paci

I seem to recall that it was the current line up of Councillors that requested this restructure and that it was paid consultants that assessed the job restructure not the TCC Staff? I myself will be contacting my local Councillor to question why such a waste of money?


Cut the spin and give us facts

Posted on 25-06-2013 16:50 | By Councillorwatch

I want to know the total cost of all this restructuring including the costs of the consultants that the CEOs supposedly hired to do the job. Then add the payouts and the costs of the new staff that were hired. Then tell us either what was saved or what was the extra cost. What is all this "fit for purpose and can take its place in the wider BOP" jargon? What does that really mean? Is it just more political drivel?


The old boys' network

Posted on 25-06-2013 17:40 | By bridp

124 new jobs over 5 years then. I must get my eyes checked, as I have seen very few advertised vacancies in the local press over these years!


That's quite a salary increase

Posted on 25-06-2013 18:28 | By The Sage

If my wage bill increased by $18 million, in a 7 year time frame, I would have had my business closed. More words from the Council. It's just like Government Departments, the money isn't theirs, they aren't accountable, don't have to pay rent, ACC, Kiwisaver, PAYE, GST, FBT and all the other expenses that a business owner has to worry about. It just comes out of a seemingly bottomless pit and we, the rate payers, suffer the consequences. Get an independent to run this as a proper business. Chuck out Priority One, the Chamber of Commerce, Smart Growth and all the other places bleeding the Council.


THIS IS ABSOLUTE BOLLICKS

Posted on 25-06-2013 18:52 | By ROCCO

Losses & costs of nearing $2million whatever 45 jobs losses become 4.6 overnight and near enough to a $million dollars paid in redundancies and still the TCC clowns try to justify this abject failure.There is no reasoning with this TCC lot fire them all out en masse lock stock and barrel (Councillors & staff alike) Appoint an LG Commissioner urgently and let him sort the financial mayhem out by way of completely independent audits.TCC Ratepayers have been shafted and should be incensed.


Nonsense

Posted on 25-06-2013 20:42 | By Poseidon

I don't belive a word of it, another TCC smoke and Mirror exersize I say. Never mind we'll have the oppurtunity tomake a more significant change at the forthcoming elections.


45 and 4.6 lost staff?

Posted on 25-06-2013 22:08 | By Plonker

I think that 2012 must have been a bad vintage and that what was reported was "45" when Council staff read that as "4.5", the decimal is in the wrong place making the number a bit less by 10 times. Sadly that only happens when it is not money and spending.


More of the same

Posted on 26-06-2013 10:23 | By YadaYada

Just another disappointment in a long string of disappointments. No matter how many qualifications and how much experience, TCC from top to bottom is an expensive burden on ratepayers and a case study in poor decision making.


Restructure ! Bollocks

Posted on 26-06-2013 13:49 | By Jitter

This is the sort of restructure you have when you are not having a restructure. Looks like our new CEO is another like the one that left and went to Auckland. No wonder Wellington did not renew his contract. It is time TCC Councillors took the bull by the horns, stopped pussy footing around and gave the CEO specific detailed instructions on the reductions in staff they expected out of a staff reorganisation.


TCC exemplary?

Posted on 26-06-2013 14:39 | By YOGI BEAR

I guess no ratepayer can say that they can be surprised with any of this it is a continuous and repeat of history and nothing more. If you voted from them shame on you, if you did not vote at all then that makes it more your fault.


restructuring

Posted on 26-06-2013 22:04 | By Capt_Kaveman

yeah kick them all out and start a fresh


The party continues ....

Posted on 27-06-2013 00:11 | By Crash test dummies

On and on and on ... Ratepayers keep paying and paying without a good reason why anything changed .... Perhaps when the bonuses roll out and rates rise someone will start to link up the two dots on the page, well i can dream cant i ?


Don't believe what they say TAURANGA

Posted on 03-07-2013 10:59 | By What A Useless Council

I was one who left. Yep paid out 10,s of thousands to only to be replaced by someone earning more .... In terms of the comment of a few less staff. A number of those non-replaced positions were vacant for many months prior to the reorg .... This is something that needs real investigation in to and the real facts spelt out so the Elected Members involved get chucked out asap


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