Louise Price
Media playback is unsupported on your device

Merthyr council dismissal move 'last resort', says lawyer

Staff at Merthyr Tydfil council could be dismissed and re-employed on lower pay to save money.

If there is no agreement on pay cuts of up to 3%, the authority could begin dismissing 1,254 staff just before Christmas, offering new contracts on the reduced terms.

The GMB union called the move "shocking". The council said it had a legal duty to balance its budget.

A special meeting will consider the proposal on Wednesday.

The council, which employs about 2,880 staff in total, is facing a budget deficit of £930,000 in the next financial year and the report warns it could grow to £5.8m by 2017/18.

Louise Price, an employment lawyer at Hugh James solicitors, said the council was within its rights but it was an unusual step and one of a last resort.

  • 15 Oct 2014
  • From the section Wales
Go to next video: 'Councils should decide budget cuts'