Saxony is facing staff cuts in the coming years due to its difficult financial situation. Finance Minister Christian Piwarz (CDU) is unable to say how many of the current 96,000 employees in the Free State's administration will ultimately remain. "However, we will have to embark on a staff reduction path. This also has to do with demographic developments and the labor and skilled labor situation. Of course, as a public service provider, we have a role model function," Piwarz told the German Press Agency.
Originally, Saxony had wanted to reduce the number of state civil servants to 70,000 by 2020. However, the state's workforce subsequently continued to grow, which was criticized not least by the state audit office.
How many jobs will be lost?
Piwarz does not believe in concrete target figures. He said that they could only reflect current developments with difficulty and cited the number of teaching staff as an example. "When the target of 70,000 first appeared in 2009, we needed around 27,000 teachers in Saxony. Today, the figure is 35,000 and it is still not enough to fully cover teaching needs." This is why the reduction in staff cannot be carried out with rigid guidelines.
"First of all, we need a task review in every department. We need to ask ourselves what tasks we can perform as a state and how many staff we need to do so," explained the minister. In view of technological developments, it is also a question of what personnel can be replaced in the future through digitalization and automation.
Saxony is already making savings in personnel in its plans for the current 2025/2026 double budget - without laying off any employees. The so-called global underspend of around 700 million euros per year will be achieved by not filling half of the current 7,000 vacant administrative positions. This will save around 250 million euros per year.
High costs for own staff
According to Piwarz, the staff increases of the past are history. Anything else would not be feasible in the budget. With around 6.4 billion euros this year and 6.7 billion euros next year, Saxony is already spending a considerable proportion of the annual budget volume of around 25 billion euros on personnel.
The Finance Minister assumes that the staff cuts can be carried out in a socially responsible manner. This is due to the high number of retirements in the coming years. However, care must still be taken to recruit enough young and well-trained people for the public sector. There is an urgent need to develop a personnel development concept.
Overload due to collective wage agreement?
One circumstance is causing Piwarz great concern. Due to the wage increases in the public sector, Saxony will have to spend around 600 million euros more on personnel this year alone. The Finance Minister speaks of a dramatic situation and an impending overload. Some provisions have been made in anticipation of pay rises.
However, the trade unions' demands - an increase of eight percent, but at least 350 euros per month, with three additional days off - leave him stunned, said Piwarz.
"This is completely illusory and, in my view, out of date. I can only appeal to the trade unions to react to the current situation with a sense of proportion," emphasized Piwarz. We are dependent on a well-functioning administration with experts. However, if pay rises continue like this, part of the public service will simply no longer be affordable.
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