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Amalgamations: Is bigger better?

The issue of Council amalgamations was once again raised in the Destination 2036 report. One comment was that Sydney could be reduced from forty-four (44) councils down to six (6) councils. Some believe that a bigger council makes a better council but there is plenty of evidence to suggest otherwise.   
Potentially, the impacts of amalgamations for workers and communities at affected councils are devastating.


The USU is completely opposed to any forced amalgamations.

Impacts on Employees
Recently the City of Auckland in New Zealand amalgamated eight (8) councils into one (1) "mega" council. Out of 6500 employees, 800 employees were redundant.

Many other employees lost the key responsibilities they had in their former roles resulting in less meaningful duties.

Meanwhile other employees did not realise what their new job would be like or thought that their jobs would be different.

Other impacts include longer travelling time to and from work which increase costs on employees and impacts on their personal life.

Impacts on Communities
When "mega" councils are formed, more often than not, smaller councils and communities suffer.

Larger councils have a tendency to "cannibalise" smaller neighbouring councils. The Council, especially in regional areas, will relocate their administration buildings and works depots to larger town centres. This model would be the same for a whole range of worksites once an amalgamation occurs.

As a result, many small businesses suffer because people no longer work in the local area. People are forced to travel to the more populated areas where the "mega" council now operates. With people not visiting local stores, businesses soon close down and the local community suffers even more.

The O'Farrell Government needs to think carefully about the impacts that amalgamations have on employees and communities before they fall into the trap that BIGGER IS BETTER.

REMEMBER: the O'Farrell government has made moves to reduce employment protections for "no forced redundancies" from three (3) years to one (1) year after an amalgamation!

Attachments:
Download this file (amalgamations_members_4_11_11.pdf)Member Update 4 November 2011[ ]449 Kb

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