The number of directors on the authority is being reduced from 22 to 11 under the radical shake up – but those who are left will receive a salary increase under the plans.
The move has come under fire from opposition councillors while the council has defended it saying the remaining managers will have bigger roles.
Council leaders say under the proposals, which will go before the council's cabinet on October 1, the authority would save £1 million from the staffing budget.
The review is part of a corporate restructure which will see five director and 17 assistant director positions removed and replaced with three strategic directors and eight chief officer posts. But under the proposals the council will retain a chief executive as a search to find a replacement for John Polychronakis, who is stepping down in the coming weeks, continues.
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Opposition Conservative group leader, Councillor Patrick Harley, today called plans for a pay rise a 'disgrace' leaving the council 'out of step' with residents.
"It is not going to go down well with residents as Dudley Council is rewarding the same people with virtually the same jobs with a pay rise of up to £40,000," he said.
"These officers are very lucky to have these well paid jobs so the idea they will have a vast pay rise is disgraceful. People working in the private sector wouldn't have the same rises for taking on extra responsibilities. Officers are dictating what is being paid."
But deputy council leader, Councillor Pete Lowe, said officials would ensure salary levels were 'value for money' as part of the 'radical' proposals to cut costs.
"With such an innovative and lean new structure, the reduced number of senior managers will be taking on additional work and additional responsibilities to ensure Dudley punches its weight at a national level," he said. "This is reflected in the salary levels."