Shellharbour council hired expensive execs in job cutting restructure

Eight long-term staff would be made redundant, it has emerged this week, under a restructure which will be back before the NSW Industrial Relations Commission next week.

The council expanded its executive staff from three to five last September and added two "executive managers" in a restructure by CEO Mike Archer, approved by elected councillors.

The United Services Union, which represents council staff, estimated the total of these four positions at $1 million, and said they were being paid for by the current job cuts.

The USU on Tuesday said the cuts included all the council's youth workers.

Shellharbour's five directors oversee about 400 staff. By comparison Wollongong City Council, which has more than 1100 staff, has four directors.

"It's a disgrace," USU organiser Rudi Oppitz said.

"There cannot be any justification for this waste of ratepayer money. They have to get the money from somewhere to pay these new directors and managers, and the easy way to do it is to cut services and staff who actually do the front-line delivery for the residents of Shellharbour.

"Some [of the eight] have been employed with council upwards of 20 years, all are highly skilled and qualified in their respective areas, but not only this they have represented this council in outside forums, receiving awards for events and services they provide."

Restructure approved by councillors

Shellharbour City Council has not answered questions on the restructure. On Tuesday it said it did not comment on staffing matters, and on Wednesday said it could not comment because the redundancies were confidential.

A spokeswoman said the restructure had been approved by the councillors last year.

"The ongoing organisational restructure is a confidential process as set out in the award," she said.

"At this time, we are unable to respond to specific questions; however, you can read the public report about the organisational restructure at the 18 April 2023 council meeting. The council unanimously endorsed the organisational structure.

"Council will continue to deliver all services to meet the changing needs of the community as can be seen in the council's draft Delivery Program and Operational Plan 2024/2025 which is currently on public exhibition."

The additional two directors are to manage the new Corporate Services Directorate and Planning and Environment Directorate, the second of which Mr Archer's report said was necessary for a greater "focus on town planning, environment and compliance".

Wording mentioned only 'workplace change'

Last year the councillors gave CEO Mike Archer permission for the restructure at the April 18 meeting, following a briefing two months earlier.

Councillors may have noticed a line in that report which said restructuring should adhere to sections 41 and 42 of the Local Government (State) Award 2020.

The report described these sections as being about "managing workplace change and associated impacts". There was no direct mention of job cuts or redundancies in the report other than a reference to "managing workplace change".

The award itself is clearer: s42 is about about termination of employment and redundancy, and the consultation process required.

Councillors were given a "comprehensive briefing and discussion session" about the restructure on February 13, 2023, Mr Archer's report stated.

Mr Archer replaced the respected Carey McIntyre as CEO in July 2022. The restructure was produced after a "review of the organisational structure" completed by Mr Archer "following six months in the role as CEO".