Reykjavík approves reforms affecting 86 jobs

Reykjavík City Council has approved extensive changes to the management structure of the city’s welfare and education and leisure departments, affecting 86 jobs, mbl.is reports. Ari Edwald, leader of the Centre Party in Reykjavík City Council, supported the changes.

Under the plan, 32 employees will be offered new or modified positions, while 54 will not continue in their jobs.

Ari said he was the only member of the opposition on the City Council’s executive committee to support the changes. The Social Democratic Alliance voted against them, while the Independence Party, Progressive Party and Viðreisn have observer representatives on the committee and do not vote.

In a statement to the committee, the Centre Party described the proposal as highly positive and important, saying the changes were likely to improve services for city residents.

Ari, who sits on the city’s efficiency group, said the changes had been discussed within the city for two to three years. The previous governing majority had not supported taking action, he said.

He described the restructuring as part of the ongoing work required of any organisation to review and develop its operations. While elected representatives set priorities, city managers in the education and leisure and welfare departments would identify opportunities to strengthen services, he said.

“This fundamental change is organised on a professional basis for the entire city. It strengthens professional teams and enables them to better support schools and their operations, as well as the services provided to families,” Ari said.

The Centre Party also considers it important that the changes are expected to produce annual savings of about 900 million krónur. That would cover roughly 15% of the gap between the city’s expenditure and revenue, which is currently close to six billion krónur.

Ari said the city faced further challenges next year, including the possibility of a slowdown in revenue and weaker growth in property charges and land sales. Given the city’s serious financial position and the threat it posed to the services provided to residents, he said it would be irresponsible for city authorities not to respond.