Social welfare charity Turning Point has blamed government cuts for a restructure which Unite the union claims will see it sack its 2,600 and re-hire them on lower pay.
The charity, which works with people with complex needs and delivers employment programmes, has begun conversations with Unite over proposals to reduce costs.
The union has blasted the proposals, which it says will see the charity’s staff fired and re-hired on worse pay and claims that it could see some employees facing losing their own homes. “Many of our 450 members stand to lose thousands of pounds a year,” said Unite representative Jamie Malone.
“This is devastating for staff… I question how an organisation driving cuts such as these could have the gall to call itself a charity. This is a race to the bottom.”
Turning Point said it put the proposals forward with a heavy heart. “The cuts in local authority and health budgets are starting to bite, and there is much more to come,” the charity said in a statement. “The proposals were not made lightly, but are forced out of economic necessity.”
Increase in income and staff numbers
Only this year, the charity had reported an increase in income and the addition of 182 staff to its rota. In the financial year ended 31 March 2012 Turning Point income grew nearly 5 per cent to £79.3m - largely on the back of new contracts. The vast majority of its income comes from grants from local authorities and other agencies.
The charity said that other organisations it competes against for contracts have already made such changes, and that reducing costs is critical to protecting jobs and continuing its work with vulnerable people. Turning Point said it was seeking to protect as many jobs as possible and that the changes would “move towards a market rate for employees, one that protects their base pay”.
“Indeed, we are proposing to increase base pay for those who are the lowest paid,” the charity said. It acknowledged that while the proposals are not about pay, “there will be some reduction of take-home pay to some employees”. Unite suggests this reduction could be worth up to £10,000 for some staff.
While Turning Point says it is actively directing staff to the union and wants to work with it “to ensure a smooth process”, Unite claims that Turning Point management have broken faith with staff “especially those transferred to the organisation with TUPE contracts which protect their pay and conditions”.
