Council staff cuts aim to save $3.5 million a year

RESTRUCTURE: Rotorua Mayor Steve Chadwick (right) and district council chief executive Geoff Williams announce a major restructure of the organisation at a press conference yesterday. PHOTO/BEN FRASER 290514BF10

Staff numbers at the Rotorua District Council will be trimmed by 66 after a major restructure of one of Rotorua's largest employers was announced yesterday.

Council chief executive Geoff Williams says the move will save the council $3.5 million a year and will streamline the organisation to fit in with the council's "2030 Vision".

Mr Williams told the Rotorua Daily Post that as at July 1 2013 there were 580 full-time equivalent staff (FTE) employed at the council and this would drop to 514 come July 1 this year.

Mr Williams said no single department was affected more than any other as the restructure looked at every position within the organisation. He said the council would save about 10 per cent on staff costs, which were about $34.5 million before the restructure.

"We believe we have come up with the required model to deliver on the community's long-term vision and the more immediate 2016 priorities," Mr Williams said.

He said more than 600 pages of feedback had been received from staff since the restructure began in February.

He said since October's elections, about 80 job vacancies within council had been left unfilled.

He said there were now 100 positions within the new structure available to staff.

These will be advertised internally, and or externally, depending on the skills, experience and expertise available within the organisation.

The recruitment process will begin next month.

Rotorua Mayor Steve Chadwick said all staff had been involved in the process.

"Some people who are working for the district now will not have a job at RDC once the dust settles and that is unfortunate for us all as that pain will be shared across our community.

"Staff have been incredibly respectful throughout the process," the mayor said.

"We are like a family, we know so many of the staff here and we know the impact on their families, too.

"This process was fair and inclusive and ethical."

She said the community had demanded change within the council during her election campaign and she had now delivered that.

"We are doing the right thing I believe ... I wanted to see the culture changed in council," she said.

Amalgamated Workers Union representative Rob Popata, who represents about 140 council staff members, was also at the press conference yesterday.

He said the union was happy with how the council had treated staff throughout the process.

"We could have taken the traditional step and said no you can't do that and we will fight you all the way or we could say this makes sense and how do we best get through this with the least impact on our membership," Mr Popata said.

"There is no easy way to do this.

"Credit to council, in our op they have done the right thing as far as process and doing right by people.

"For us it's nothing personal and our members understand that," he said.

Councillor Mike McVicker, who last year called for at least 50 jobs to be cut, said although no one likes to see staff lose their jobs, it was inevitable.

"During the election campaign I promoted a more cost-effective and efficient council.

"The new direction for council will provide a future platform for a positive and enterprising change which will at the end of the day provide significant benefits for Rotorua ratepayers."

Also announced yesterday were plans to establish two new business units to look after tourism, events and venues, the i-Site and Castlecorp, with an eye on turning those business units into Council-Controlled Organisations (CCO).

"Most people see the bringing together of tourism, events and venues and the i-Site as logical.

"Likewise, others are excited by the future potential of the Rotorua Contracting proposal."

He said the council would still have to make the final decision on the formation of CCOs and public consultation was still required.

"Forming business units does not commit council to the development of CCOs. These units could stay in this form if the decision was made not to progress the CCO concept," Mr Williams said.