See "Inside Housing" website. "Unions are threatening one of the largest
industrial actions in the housing association sector’s history over
Circle’s plans to restructure ahead of the rent cut.
Unison, Unite and GMB are close to declaring an industrial
dispute over the 50,000-home landlord’s proposals to centralise
services, cut jobs, remove subsidiary boards and change terms and
conditions of employment.
Circle is aiming to cut its operating
costs by 17% a year to enable it to cope with the social housing rent
cut, which it estimates will reduce income by £50m a year. The first
phase of this will see 60 compulsory redundancies.
The changes begin to kick-in from 1 April, and the
unions
on Thursday requested an urgent meeting with chief executive Mark
Rogers to discuss a ‘counter-offer’ they have made to Circle. Mr Rogers
has agreed to meet the unions.
Circle is changing 12 terms and
conditions, including alterations to hours, the way salaries are
calculated, pensions, leave and redundancy
policy.
Circle has since modified a number of its proposed policies, extending
protection against the changes in areas such as annual leave, pay and
pensions. However, unions remain opposed in a number of areas.
The unions are also calling for the restructure to be put on hold until after Circle has completed its
merger with Affinity Sutton. They fear that otherwise
staff
could be affected by a second restructure as the merger takes place.
Circle says the restructure is a completely seperate process.
John Gray, secretary of the Greater
London
Housing Association branch of Unison, said: “We don’t want to have a
war over this, but we want to speak to the chief executive as soon as
possible and try and sort something out.” The unions were angered by a
letter from Mr Rogers last Thursday saying there has been “no firm
viable counter proposal from the unions” as the unions’ proposals would
cost more.
Robert Melcioiu, GMB convenor for Circle, said he believes around 40% of Circle’s 2,300-workforce are members of the unions.
Mark
Rogers, chief executive of Circle Housing, said: “We – alongside the
sector as a whole – are implementing a number of changes in order to
protect the long-term financial viability of the organisation and
continue our social purpose, to invest more in our homes and
communities. We understand that change is difficult for staff, and are
committed to supporting them through this period.”
THE DISPUTE EXPLAINED
Circle
had already expressed a desire to find efficiencies through a plan
called ‘Fast Forward Circle’. However, the 1% rent cut, announced last
July, has prompted the organisation to outline an ambitious plan to
reduce operate costs by 17% and centralise services. The
union argues that the plan will impact on terms and conditions and lead to a poorer service for
tenants. It says the plan should be delayed until after the organisation’s merger with Affinity Sutton.