Job cuts to herald hard times

Monday 24th May 2010, 3:00PM BST.

IT seems that the Island is about to enter a new and difficult era. Although it could be said that the recession and its adverse effects have already amounted to a drastic change of circumstances for our community, a request that will be made this week is likely lead us even further down the road of harsh economic reality.

Treasury Minister Philip Ozouf will ask States Members to release £6 million – but not to stimulate the economy in any direct sense. The money will, if made available, fund up to 60 voluntary redundancies in the public sector.

That, in itself, is not an exceptionally dramatic development. Voluntary redundancies among States employees are not unknown, but for a long time they occurred against the background of a promise that there would be no compulsory public sector job losses. That promise, of course, no longer stands, and the scale of Senator Ozouf’s initiative and the indication that more redundancies will be scheduled for the next three years mean that we are approaching new territory.

Moreover, although there has been no announcement on the subject, it is unlikely that voluntary redundancies will be the end of the matter. The Council of Ministers is committed to a programme of cuts that involves job losses because they are an integral part of the strategy to fill the infamous fiscal black hole. It is a fair bet that if voluntary severance fails to make the required contribution, compulsory measures will follow.

Assurances have been given that fair severance packages will be paid to those who leave States employment, though that will offer only limited comfort at a time when jobs are scarce. It is a sobering fact that a vacancy for a part-time parish clerical position recently attracted almost 200 applicants.

The reaction of the unions to the prospect of job cuts is predictable. They are scarcely likely to welcome them with open arms. The interests of their members will, understandably, be their priority. As a result, industrial unrest, already a feature of the present political and economic landscape, may increase.

But, like it or not, this must be a time for realism and tough decisions. Many Islanders will therefore accept the necessity of even painful economies. In addition, many will welcome the idea that the public sector workforce, widely reckoned to be excessively large and overburdened with posts of dubious value, is to be trimmed.

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