Staff cuts identified as way to make biggest savings

In a briefing note entitled Efficiencies in refuse collection services, the Manchester-based local authority support body identified staff and transport costs as the most expensive aspects of delivering a collection service, and therefore the areas where small improvements would produce the largest savings.

According to APSE, front-line staffing costs represent 39% of the total cost of running waste collections, but staffing is also the most contentious area of cost-reduction and, as a result, the area avoided by many managers as the look to cut costs in light of budget squeezes.

But, in the note, which was published last month, it said: Reductions in staff numbers may be necessary as councils attempt to maintain services whilst managing the front line.

It added: Difficult though it might be, the correct balance has to be struck between levels of equipment/vehicles and staffing hours to ensure the financial viability of the refuse collection service.

Providing advice for councils that do make reductions in their collection staff numbers, APSE stressed they should manage the situation sensitively, involve trade unions and use options such as redeployment, voluntary redundancy and reduced hours where possible ahead of compulsory redundancy.

Source: APSE

The guidance comes in the wake of union warnings that councils and their contractors could face industrial strife is they move to reduce staff or pay as a cost-cutting measure forced by reduced government funding for local government (see letsrecycle.com story ).

Cuts

In its guidance, APSE also warned against crude cuts which it said ran the risk of damaging services, increasing fly-tipping and waste contamination, reducing recycling rates, creating potential for landfill fines and damaging the environment and public perceptions.

In light of this, it outlines a number of steps councils could take to make savings in a number of key areas of refuse collection service delivery. These include:

• Front-line staff costs councils are advised to measure productivity rates and explore areas such as better route planning and extending working patterns. Areas such as setting personal targets for crews and reducing absence levels are also identified as important;
• Management costs councils are advised to benchmark with other councils to identify whether their management and administration staff numbers are appropriate;
• Transport APSE highlights the use of regional purchasing arrangements to reduce the cost of vehicles by buying in bulk. Benchmarking is also advised;
• Central Establishment Charges the guidance explains these centrally-apportioned fixed costs are often contentious due to being enforced arbitrarily, as such it calls for charges based on actual usage to be argued for by those running collection services;

• Technology advances such as hand-held technology and route optimisation could have a role to play;
• Enforcement APSE notes that using enforcement powers can generate income, such as for waste being left out at the wrong times, as well as charging for extra services such as bulky waste. However, the body stressed this could impact on fly-tipping and the associated cost of this problem.