Birmingham City Council has announced that it is reviewing all terms and conditions of employees as part of measures aimed at cutting costs by £330 million over the next three to four years.
The council has begun consulting with unions over proposed changes that include a review of car allowances, a revised contract of employment, the introduction of job groups instead of job descriptions and an overhaul of disciplinary procedures.
Stephen Hughes, chief executive of the council, said: “It is estimated the council will need to reduce its net expenditure by £330 million over the next three to four years which equates to around one-third of our overall net spend.
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“The magnitude of this financial pressure is immense. The council needs to radically review its overheads and expenditure, and as part of this there is a need to broaden the existing review of employee allowances and terms and conditions of employment which began earlier this year.”
The council’s relationship with its staff and trade unions has been strained this year, following a successful equal pay claim by about 4,000 female staff. Relations between staff representatives and Birmingham City Council were described as the “worst in the country” by the GMB union.
