HUNDREDS of Southampton council workers are being encouraged to apply for voluntary redundancy in a bid to save £35 million by the next financial year.
All staff at the city council have been written to by chief executive Mike Harris who explained the need to reduce staffing costs to make savings.
Staff across the organisation who have worked there for two years or more are eligible, the Echo understands, with the exception of school staff.
A Southampton City Council spokesperson said: "In order to become a sustainable organisation and offer value for money to local people, we are developing a range of cost saving, efficiency, and income generating proposals.
"One option we have is to reduce the amount of money we spend on salaries, and we have therefore launched a consultation with our staff on voluntary redundancy proposals."
There are currently no indications of how many staff will leave the council but the authority says staff will not be granted voluntary redundancy where it would "lead to service failure".
Some services may need a "re-design" to accommodate the loss of staff, the authority said.
READ MORE: Southampton City Council: Labour denies responsibility for finance
Union UNISON has been in discussion with the council about its finances after the former chief financial officer warned that the authority faces declaring effective bankruptcy due to spending.
A spending review is also being carried out as part of the authority's medium-term financial strategy to determine how reductions can be made after warnings from external auditors.
UNISON South East regional organiser Neil Duncan-Jordan said: "In difficult circumstances, we are seeking to ensure that jobs for staff and services for residents remain protected.
"We will oppose any proposals which involve compulsory redundancy. These challenges are the direct result of years of underfunding of local authorities like Southampton by the Westminster government.
"We urgently need more funding for councils if vital services communities rely on are to be properly protected."
It said it will be "keeping a close eye on the number of staff who apply to leave".
However, deputy Conservative leader, Cllr Jeremy Moulton, has taken aim at the Labour administration saying it has "brought the city council to the edge of bankruptcy with their financial incompetence, wasteful spending on pet projects and lack of any sort of plan".
READ MORE: Southampton finance boss accused of dodging questions on money issues
He added: "Significant redundancies will impact on delivery of important council services and we call on Labour to ensure that front line roles which support vulnerable people, children and the elderly are not lost.
"We also call on them to stop creating new and unnecessary city of culture legacy jobs. Employing new cultural marketing directors whilst making street cleaners redundant is absolutely perverse."
Cabinet Member for Finance and Transformation, Cllr Steve Leggett, said: "The entire country is struggling, due to this Conservative Government bringing our economy to its knees. We know the local Conservatives, made the situation worse when in power by wasting money fixing private roads.
"As a new Labour Council, we understand the need to deliver value for money to local people, and making every pound stretch. That is why just like every family in Southampton, we too are tightening our belts within the council, so that we reduce the impact of Government cuts to local residents, while still delivering better neighbourhoods."
Southampton City Council oversees services for around 250,000 residents, 16,300 tenants, and 6,000 businesses, and employs more than 3,000 people.
The 45-day consultation period on the voluntary redundancy scheme ends on July 21.
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