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Council re-evaluates homelessness contract following strike action
A London borough is re-evaluating its contract with one of Britain’s biggest homelessness charities following a strike over changes to pay.
Unite members at St Mungo’s Broadway have been striking for a week since last Friday following a vote of no confidence in the charity’ senior management last month.
Jonathan McShane, cabinet member for social care at Hackney Council, said: ‘We hope this current dispute is resolved as soon as possible to the benefit of those who need these services, and we will be re-evaluating this contract to ensure we’re happy it will continue to supply the high quality of care we demand.’
Unite, which has more than 500 members at organisation that formed in April from the merger between St Mungo’s and Broadway, claims there was no consultation on the salary changes for new staff.
St Mungo’s Broadway runs a 60-bed homelesness hostel on Mare Street in Hackney, east London.
Mr McShane added: ‘We are concerned about the apparent lack of any staff consultation regarding the proposed changes and about the ability of St Mungo’s Broadway to deliver effective services that are not compromised by any downgrading of staff roles.’
The charity’s proposed changes to pay would mean new staff will no longer be paid according to rates set by the National Joint Council - which are negotiated with unions - and would instead receive wages in line with market rates.
Unite has said because market rates have been depressed in the homelessness sector for a number of years, this will lead to a reduction in the salaries of new staff.
Howard Sinclair, chief executive of St Mungo’s Broadway, said: ‘We have kept in regular touch with our commissioners in Hackney during the last week of action, as we do anyway, and are happy to speak with them and councillor McShane about the service at any time.
‘We’re also happy to explain to the council the consultation process we have undertaken. A number of changes were inevitable following the merger of two organisations with different pay structures and policies, but we have honoured the pay and terms of our existing staff. Pay for new staff is at the median for roles in the sector, higher for front line staff.
‘We have had to take these measures because of the pressures organisations working in our sector face as the money available to pay for services for homeless people is reduced, while demand for these services increases. We call on Unite, as we have done with Unison our other recognised Union, to work with us to find a lasting resolution.’
Yesterday, Unite picketed St Mungo’s Broadway’s headquarters in Hammersmith, west London.
UPDATE
Neighbouring borough Islington Council has added its weight to the protest against the changes to pay at St Mungo’s Broadway by writing to Mr Sinclair with its concerns.
In the letter, passed to Inside Housing today, James Murray, Islington’s executive member for housing and Janet Burgess, executive member for health and wellbeing, said: ‘We… urge you to re-think the changes, and to negotiate with your employees and their union representitives, to ensure a fair future for your staff.’
