East Ayrshire Council: Jobs to be handed to leisure trust

East Ayrshire Council has discussed a range of cost cutting measures – reviewing across a wide range of services, with a leisure and culture review among those having the most impact on staff and communities.

Trade unions have already criticised both the impact the move could have on services as well as those staff transferred to the trust.

The council proposes the transfer of more than 104 full time equivalent posts from council services to East Ayrshire Leisure Trust (EALT).

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This will be the result of a number of council services moving, including instrumental music, creative minds, outdoor education, community and  corporate catering, ‘play and early intervention, young people, sport and diversion; community health and activity.’

The transfer to the trust would also increase the amount of many the council pays to EALT, from £5.46m to £8.71m, an increase of £3.24m.

The trust would also be given more scope to raise more funds through a ‘trading subsidiary’, a move that has led to concerns about the future of staff should the trust not achieve that profit.

EAC insists it is in a far better position than other councils due to ‘prudent fiscal planning’.

But the authority says "we must now plan for a future that will undoubtedly result in significant reductions in core revenue funding, escalating service pressures, reductions in external funding and other contributing factors such as the cost of borrowing, inflation and continued market volatility".

The report bluntly states that it will be unable to carry out the preventive work it requires to carry out if it doesn’t change how it provides services.

This means the council will ‘become a smaller organisation that works proactively and effectively with partners to deliver effective, efficient and economic services’. 

The transfer of in-house council services to an arms length trust is an example of what this means in real terms.

East Ayrshire Council headquarters. (Image: Street view)

The report also explains how EALT agreed to a review in 2021 that would provide a more integrated service delivery be more flexible in a way that no other trust in Scotland had looked at.

The report states: “No other Trust in Scotland has taken this radical approach to integrated service delivery. However, the Trust believes that the removal of recognised silos will break down barriers, provide clarity of service provision and will enhance the delivery of programmes to our communities.

“In order to grow, organisations need to have the ability to rapidly react to market changes, competition, emerging technology and shifts in customer and employee preferences.”

One of the key planks of this approach is the use of EALT trade subsidiary to raise money for the trust.

This is an area which has caused concern among trade unions.

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UNISON Scotland regional manager, Simon Macfarlane, said: “If the outsourcing of these services is agreed the council will have a fight on their hands.

"These proposals are detrimental to young and vulnerable people; will mean huge cuts if the trust doesn’t achieve ambitious profits from a standing start; and will put over 100 jobs at risk.

"Councillors will also be giving up democratic control over how their services are delivered.

“The council’s own innovative community engagement and support services Vibrant Communities were congratulated last year on their 10th anniversary; for their caring, kind, and connected approach.

"It doesn’t make sense to transfer these celebrated council services to a trust.”

Mr Macfarlane also said: “Unions have not been properly consulted. Councillors should reject these proposals and ask officers to get back round the table and work with us to protect vital services and secure jobs.”

The EAC report acknowledges the trade Union concerns, including the level of involvement, the amount of detail they could share with staff and potential implications for employees.

The report adds: “Whilst it is appreciated that affected employees and the trade unions would want as much information as possible at the earliest stage, it is noted that this had to be balanced with having confirmation of the direction of travel from the council before specific details for some reviews could be shared.

“It is, therefore, intended that subject to approval of this report, there will be a period of robust and meaningful engagement with the trade unions and affected employees before reporting back to council to ask for agreement on any specific proposals.”