It is understood Chris Schroeder, who has been the general manager since August 2019, resigned after being given an ultimatum by the council to resign or be fired.

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His resignation now leaves the council without permanent staff in four key management positions.

Ian Pearce has been appointed acting general manager, but there is no senior planner, deputy manager or works manager.

Australia services union Tasmanian representative Aaron De La Torre said the position of the council was untenable.

"We have got many members at the council who are continually expressing concern at the failings of this council, the complete lack of care [and] integrity," he said.

"We've got workers off on workers compensation due to stress and anxiety [and] we've got members resigning left right and centre."

He said Mr Schroeder had been scapegoated and called on the Local Government Minister to set up an inquiry.

"This poor bloke has been hung out to dry and taken all of the blame for anything that has happened in the last 18 months, two years," Mr De La Torre said.

"We just beg that [the minister] actually does something this time, we've called for action in the past and it has fallen on deaf ears."

In a statement the council said the decision to part ways with Mr Schroeder was mutual and wished him the best.

Mayor Debbie Wisby declined to comment further.

Local Government Minister Mark Shelton said staff appointments were operational decisions.

"The Director of Local Government and I continue to monitor the situation closely to ensure that essential services are being delivered, the council is addressing the requirements of the Local Government Act 1993, and the council is meeting the expectations of the community," he said.

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