05 November 2010
The States Employment Board has approved, and the Treasury has released funding for, 73 applications for voluntary redundancy (VR). Following the launch of the States-wide scheme earlier this year 282 employees applied for VR, from which 122 applications were supported by their departments and passed on to a panel of senior managers for a final decision.
The scheme was launched on 2 August as part of the Comprehensive Spending Review. Its aim was to help departments to save money, review their services and rethink the way they work. This is the last VR scheme to be offered on current terms and conditions.
The Chief Minister, Senator Terry Le Sueur, said “The 73 voluntary redundancies announced today will cost £6 million and will save more than £9.5 million in salary costs over the 3 year period of the spending review.
“In addition to the savings over 3 years, there will be ongoing annual savings. If all 73 posts were to remain filled until normal retirement age, it would cost the States nearly £38 million in salaries.
“This reduction in staffing costs, which includes 30 senior management posts, is contributing to the spending review’s target of finding £65 million of savings by 2013. We need to secure Jersey’s future and tackling States spending is one way to help us do that. We are also reviewing the way the public sector is organised and reassessing the services we provide.”
The States Assembly agreed to fund the VR scheme in July and staff were invited to apply for voluntary redundancy between 2 August and 17 September.
Each application was reviewed by the department’s Chief Officer and their senior managers. Viable applications were ranked for progression to a panel of senior managers, which included the Interim Treasurer, the Deputy Chief Executive and HR Director. They reviewed applications from a States-wide perspective.
Departments are in the process of informing staff and unions of the final decisions and managers will ensure those people who have been unsuccessful in their application for VR are properly supported through this process.