Union fears hefty price of NHS health cuts
Sep 6 2010 by Andy Hughes, The Journal
SEVERE cost-cutting plans in the health service could leave the NHS with a North East redundancy bill worth tens of millions of pounds.
NHS North East is planning to cut 500 management and administrator positions as part of a huge shake-up to deliver annual savings of £27m across the region.
But the Department of Health is now proposing to offer “golden goodbye” payments to managers who agree to resign voluntarily. The Health Service Journal has revealed that the payments could be up to a year’s salary and, if managers are given compulsory redundancy, they could receive two years’ salary.
With many senior managers earning up to £100,000 a year, union leaders fear the pay-offs could spiral to more than £30m.
The Mutually Agreed Resignation Scheme was launched by the DoH on Wednesday.
NHS North East said it is still considering whether to join the scheme and added that the posts were being cut so the money saved can be reinvested in front line services.
Peter Chapman, Unison North East regional organiser, believes the new scheme is “self-defeating”.
He said: “In light of this scheme, what needs to be considered by the NHS is the cost of making people redundant and the value they are to the service.
“It could be argued that these proposals are self-defeating, as they are attempting to save money by paying out millions. I would argue that it would be better for the trusts to keep the managers and workers in employment, and continue providing a good service.
“However, I must say that staff who lose their jobs are entitled to be adequately paid for their service.”
Health Secretary Andrew Lansley has told NHS trusts that they must cut management costs by 45% over the next few years as the Government attempts to save £20bn by 2015.
The proposed cuts will affect NHS trusts on Tyneside, Wearside, County Durham and Teesside.
They are due to take effect from April next year. NHS North East has said it hopes to avoid significant compulsory job losses.
Unison expressed concern at the planned cuts.
The union has also argued that managers carried out “important NHS functions”.
A spokesman for NHS North East said: “We are already consulting on plans to reduce the number of posts within management and administration so the money saved can be reinvested in front line services. We have identified a reduction of just over 500 posts in the strategic health authority and primary care trusts across the region.
“These are a mixture of managerial and administrative posts right across the pay band range.
“The national Mutually Agreed Resignation Scheme only became available and it is now up to each individual organisation to decide whether or not to take it up.”
