One of the first measures adopted by the government of the New Majority was to reduce by 12% the salaries of the councilors and Mayor, and drastically reduce the number of trust and managerial positions, currently entirely oversized. This decision meant initial savings of 400.000 Euros. Similarly, the organizational structure of the corporation was also radically redesigned and we reduced the seven previous areas to three, such an action brought about important savings.
However, to redirect the municipal economy, we need other cost contention measures. Since the main municipal expenditure is staff, and with the municipal budget of 2012 in mind, we developed a plan that will allow the Town to save 1,9 million per year, a measure absolutely necessary and essential under the situation in which we find ourselves.
To implement those measures we had two choices: lay off workers or distribute cost reductions among the entire workforce. We chose the second option, as we consider it to be more supportive, fair and balanced. We informed Unions of such a decision. The package provides the cancellation of productivity schemes and the pension plan agreed by the previous government, reduce overtime of the Local Police Brigade and performance-related pays of the municipal squad, reduce temporary contracts and supplementary payments of work positions. This sums up to those already announced and applied at the beginning of the term, that were geared to reduce salaries of elected officials and managers.
No one wants to deal with such actions. Such actions are not popular, and their implementation is quite unsavory. Behind every employee of the City Hall, there's a personal and familiar reality that also suffers from the current situation. I'm fully aware, and that is why I want to thank them for their professionalism and solidarity.
Austerity is not only the flagship of our City Council, but a dire necessity. The corporation's financial situation is so critical that it requires efforts and sacrifices by all.
