Restructuring
7 The number of people in Public Service departments whose positions were declared surplus as a result of restructuring during the year to 30 June 1999 was 57% of that for the previous year (which was the highest since the year to 30 June 1993). In contrast, there was an increase of 27% in the number declared surplus within the selected State sector organisations. There were 18 departments and 14 selected State sector organisations with 10 or more staff receiving severance, enhanced early retirement or retraining payments as a result of their positions being declared surplus.
8 The average cost of restructuring per employee has increased by 7% in the Public Service and decreased by 16% for the selected State sector organisations. These average cost figures vary considerably from survey to survey, depending on the length of service of those declared surplus and the proportion taking early retirement. There is also considerable variation between departments.
9 Table 2 shows the total number of staff who received payments as a result of restructuring during the year to 30 June 1999, and the total cost of these payments.
Table 2: Cost of Restructuring in the Year Ending 30 June 1999
|
Number of Employees Receiving Payments |
Total Gross Cost of Payments ($m)1 |
Average Cost per Employee ($) |
|
|
Public Service |
790 |
28.5 |
36,088 |
|
Selected State Sector Organisations |
513 |
12.2 |
23,728 |
|
Total for Year to June 1999 |
1,303 |
40.7 |
31,222 |
|
Total for Previous Year to June 1998 |
1,825 |
59.2 |
32,438 |
1 The figures for total gross cost of payments have been rounded.
10 Total payments and the number of staff receiving payments as a result of restructuring between 1993 and 1999 are presented in the following two graphs (Figure 1).
Figure 1: Cost of Restructuring 1993 - 1999