Antrim and Newtownabbey Borough Council has reversed its decision to axe 73 workers due to the COVID-19 pandemic, according to a trade union.
Following the announcement, trade unions urged the council to re-think its decision.
in a statement issued today (Thursday), a council spokesperson said it will defer the proposal to release 46 short-service staff. However a number of agency workers are still set to go.
Minister for Communities Deirdre Hargey had expressed concerns about the potential redundancies.
In a statement, the council said: “The Council have considered the Minister’s recent statement and welcome her acknowledgement of the Council’s serious concerns about our ongoing financial sustainability. We are pleased that the Minister recognises the role that she has to play in assisting the Council to avoid staff redundancies.
“The Council needs urgent clarity about the extent to which we can make use of the Government’s Job Retention/Furlough scheme and we look forward to hearing from the Minister over the coming days with regards to this.”
The statement said in line with other Councils, Antrim and Newtownabbey has already requested that employment agencies furlough staff who are not essential.
“We are already engaging with Departmental Officials to provide them with more information about the additional costs we have incurred in relation to the pandemic, our significant loss of income and cash flow difficulties.
“Given the predicted severe economic downturn, we are forecasting an unprecedented shortfall in the amount of rates which will be generated for the Council in the current financial year and beyond. This will impact on our ability to remain solvent and continue to deliver Council services.
“The Council is mindful of its legal responsibility to avoid insolvency and maintain an adequate level of reserves. The Local Government Finance Act (NI) 2011 states that ‘A Council shall make arrangements for the proper administration of its financial affairs’.
“Given the Minister’s statement, we will temporarily defer the Council’s proposal to release 46 short service staff. However, until clarity is received, the Council will continue to plan for the urgent action it may need to take in order to ensure that we can continue to provide essential services. The Council will have no choice but to consider the position again in 2 weeks’ time should the matter not be resolved.
“Within this context, our urgent priority is to address our ongoing financial viability and the need to avoid insolvency, therefore the potential to reduce our current staffing levels remains under review,” the statement added.