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Unite brands new loan scheme offered by landlord ‘desperate’ amid strike action
A union representing striking housing association repair staff has criticised a new partnership with the landlord offering loans to employees.
Unite the Union said it was a “desperate attempt to quell escalating strike action”. Although Sanctuary has said the scheme has nothing to do with the action and is being offered to all employees through a third party.
The association’s London maintenance workers have been striking over pay, travel-time disputes, parity with office staff, a four-day week and recognition of their union since voting for action in February.
Members went out on several strike days in February and March.
Around 50 repair workers, who are based in Hackney and carry out repairs across London, are striking over a 4% pay rise imposed in 2023.
Unite said this was a “significant pay cut”, as the real rate of inflation at the time was 11.4%.
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All staff received an email fromSanctuary earlier this month, seen by Inside Housing, announcing that it was “pleased to confirm that we have launched another employee benefit, Salary Finance, which is now available for all employees on e-hub”.
The email stated: “To support employee financial well-being, Sanctuary has introduced Salary Finance as a new employee benefit.
“For many of us, money-related stress can impact our health and happiness, and can be difficult to navigate without the right options.
“Through Salary Finance, Sanctuary Group colleagues will have access to loans repaid through salary and free financial education. So, whether they want to take back control of their finances or simply improve their financial well-being, Salary Finance may be able to help.”
Employees can get access to loans of between £1,000 and £25,000 that are repaid directly from their salaries.
Untie said the housing association is “encouraging struggling workers to take on further debt rather than agreeing trade union recognition and union-negotiated wages to improve their finances sustainably”.
Unite regional officer Matt Freeman said: “Sanctuary workers on the picket line in Hackney are using foodbanks because of their low wages.
“But instead of putting forward a fair wage increase, which this extremely wealthy employer can well afford, Sanctuary is offering the chance for workers to take on debt.”
A spokesperson for Sanctuary said: “Over the past two years, pay for frontline maintenance colleagues in London has increased by at least 17%.
“Like many organisations of our size, we also offer a wide range of benefits to our employees including health and wellbeing support, access to legal and financial advice, and annual leave purchase.
“As part of our overall benefits offer, colleagues have the option of borrowing directly through Salary Finance, who work with many other major employers.
“Sanctuary does not directly provide loans to colleagues through this arrangement.
"We continue to engage with the small number of colleagues who have raised concerns with us and remain committed to minimising the disruption strike action may cause to our customers.”
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