Major job cuts have been announced at Mornington Peninsula Shire as the new CEO, Mark Stoermer, enacted a plan to change the operational structure of the organisation.
Shire mayor Cr Anthony Marsh has also called out reports that he is responsible for the job losses as an “absurd misrepresentation”, saying “The council sets the budget, and it is the CEO’s responsibility to implement that decision through operational changes, including any staffing matters”.
A statement issued by the shire on Thursday (21/8) stated “The restructure will result in up to 48 redundancies with redeployment opportunities identified for many of these staff members. Impacted staff are being provided with support.”
Stoermer told The News “The organisation is going through a challenging time. We are going to lose some good people. We want to be as open and transparent as possible and treat those people with respect”.
At the heart of the change is the introduction of a structure with two shire directors, decreased from the previous four director model that will see some of the shire’s current directors leave. Also abolished is the chief financial officer position.
A “communities directorate” and a “projects and assets directorate will report to the CEO, while an “executive manager – peninsula planning” and a “chief of staff” will also report directly to Stoermer.
Challenges facing the shire include a state government-imposed rate cap, fast rising costs for services provision and staffing, and cost-shifting, particularly from the state government. Last year, the combination of these factors were flagged as issues that would see the shire moving towards a “precarious financial position” over the next five years if nothing was done (Financial crisis looms for shire, The News 22/10/24).
“In May, council endorsed the operating expenses component of the 2025/26 budget. This included a reduction in employee expenses of $5m and service efficiencies of a further $5m,” said Stoermer.
“The budget identified the need for the shire to take action to ensure that we remain financially sustainable and able to meet the current and future needs of our community.
“I want to make it very clear that the redundancies reflect the abolition of job positions, and are not a reflection of the people in those roles.”
Stoermer told The News that there are no more pending redundancies, but the shire will still continue the review of service efficiencies.
Shire mayor Cr Anthony Marsh told The News “This was a necessary process to ensure the organisation is financially sustainable and well-positioned to meet the needs of our community”.
“With rates capped and costs continuing to rise, Council has had to make responsible decisions to keep the organisation sustainable. Independent advice confirmed that change was possible and necessary, and the CEO is leading a careful process to achieve that.”
“Most of the changes are in the upper levels of the organisation. These changes won’t affect the delivery of services but will free up funds to be invested directly back into the community. This is an important step that ensures a stronger return for our residents.”
It is believed the new organisation structure for the shire will be finalised by mid-September.
