A formal consultation between the trade union and the water company has concluded after the company revealed it was planning to let go about one in ten of its employees – mostly from middle management roles – in order to meet its efficiency savings targets as part of its plans for the next AMP cycle.
However, GMB regional officer Stuart Richards told Utility Week that the severity of these cuts is “far below” the 500 figure first announced in October.
He said: “It is still a significant amount but it is a lot better than where we first started off from.”
There are expected to be around 100 compulsory redundancies before the end of March, with other members of staff either taking voluntary redundancy, and with some roles not being filled.
A number of employees are also being offered the chance to be redeployed within the company.
Richards added that talks over how the management restructure will affect those employees who remain in post are ongoing.
In a statement Severn Trent said: “In October we announced that we’d be reducing management and support roles by 500, to make sure that our management structure is operating in the most effective way.
“We’ve worked in consultation with our employees and Trades Union partnership (Unison, GMB and Unite) to reduce the need for compulsory redundancies.
“By managing vacancies, redeploying individuals and offering voluntary redundancy we now expect that under 100 compulsory redundancies will take place.”
The news comes after Severn Trent announced that it is accepting trhe final determiantion set out by Ofwat and that it is cutting its dividend by 5 per cent.