Antrim and Newtownabbey Borough Council has voted to furlough around half of its workers due to the COVID-19 pandemic.
The decision was taken following a remote meeting on Thursday night.
More than 300 of the council’s 650 full time and casual workers are set to be put on the government’s furlough scheme. The council has agreed that employees on furlough leave will be paid 100% of their salary up to 19 May.
As a result of the pandemic, the council has closed all of its buildings and outdoor sports areas resulting in a loss of income of approximately £665,000 per month or circa £8m in the current financial year.
In addition to this, as a result of the anticipated economic downturn, the council estimates that it will generate £7.6m less income through rates. This leaves a total estimated shortfall of £15.6m in the council’s budget in the current financial year.
The Council employs 670 staff and 567 casual workers. A retrospective application will be made to furlough 152 staff and 170 casual workers. Going forward, an application will be made to furlough 205 staff and 170 casual workers. The number of employees being furloughed will be reviewed every three weeks and the council will continue to redeploy these staff where possible.
The council has agreed a new furlough policy which will be effective from 19 May. Employees will be paid at the percentage rate which is funded by the government. This is currently 80% of the normal salary, up to a maximum of £2,500.
If the applications are successful, then it is anticipated that this will generate approximately £970,000 to the end of July and this will contribute to the shortfall in income.
Previously, the council had deferred the release of 46 staff and 28 of these will be furloughed. The council will continue to plan for the urgent action it may need to take to ensure that it can continue to provide essential services and address its ongoing financial viability and the need to avoid insolvency. A special council meeting will be held once per month.