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Union issues warning over Riverside-One merger as chief executive signals role reductions
Unite the Union has called for no job losses as a result of a proposed partnership between Riverside and One Housing Group (OHG) as the chief executive of one of the organisations involved warned of future role reductions.
The union, which represents workers in both organisations, warned against a “race to the bottom” in pay and employment conditions and hit out at correspondence to staff from Richard Hill, chief executive of OHG, that said role reductions are “likely”.
OHG has promised to consult with employees over any significant changes and listen to the responses.
Partnership talks were announced on Thursday with Riverside planning to take over OHG, which has experienced financial difficulty in the past year.
Mr Hill stressed that the potential merger will enable the housing associations to do more for their customers.
Liverpool-based Riverside owns more than 58,000 homes across the country, while OHG manages a stock of around 17,000 in London and the South East. If the merger goes ahead, it will form the fifth biggest housing association in England.
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An email from Mr Hill making the announcement to staff, seen by Inside Housing, said: “Longer-term, we shall be aiming to improve our offer to employees in terms of recognition, benefits and employee experience, and offer more growth and promotion opportunities, and pool our expertise.
“The proposals include having main offices in both London and Liverpool. We will be consulting with colleagues and our recognised trade unions.
“Over time we will explore further operational integration to create a more efficient and effective organisation, and there are likely to be some role reductions – and we will consult with the employees affected and their union representatives in line with our current employment policies and legal requirements, and endeavour to minimise the impact.”
Siobhan Endean, national officer for the not-for-profit sector at Unite, said: “We are strongly against any compulsory redundancies now or in the future, or an unattractive race to the bottom in terms of pay and employment conditions for staff, who are any organisation’s greatest asset.”
OHG became one of the first mainstream housing associations in recent times to report a loss in its financial accounts this year, with a shortfall of £8.6m.
It subsequently received a governance downgrade by the Regulator of Social Housing from G1 to G2.
John Sheppard, Unite regional officer for Riverside, said: “This is another example of ‘merger mania’ that is plaguing the sector with endless and expensive restructuring that causes great uncertainty for staff and with tenants left feeling isolated as services become ‘faceless’ and more distant.
“The management should concentrate on getting the basics right.”
Richard Hill, chief executive, One Housing, said: “Riverside and One Housing have a shared recognition that we are better and stronger together; when we combine we will be able to do more for our customers and the communities we serve.
“[On Thursday], we confirmed that an early focus of our proposed partnership would be on integrating key corporate and support services and that over time we will explore further operational integration, including the co-location of offices where this makes sense and allows us to build a better service.
“We are clear that we will consult with colleagues about any significant changes and listen to what they tell us.”
Riverside has been approached for a comment.
