Council to ‘re-evaluate’ St Mungo’s contract as staff strike over working conditions
Defiant: St Mungo’s workers rally outside Hackney Town Hall. Photograph: Glenn McMahon
Hackney Council is to “re-evaluate” its contract with St Mungo’s Broadway (SMB) after the homeless charity imposed cuts to pay and conditions for frontline workers.
Staff at the charity, which runs hostels on Mare Street and across London, have been on strike since Friday after management failed to consult with them or their union, Unite.
The changes include a 19 per cent pay cut for new employees, existing roles being downgraded and controversial redundancy measures.
Meanwhile, the chief executive Howard Sinclair and HR staff have been awarded £30,000 and £5,000-a-year pay rises respectively, according to Unite.
Staff warned the quality of services will be affected as morale is damaged and experienced workers leave.
Cllr Jonathan McShane, Cabinet Member for Health, Social Care and Culture at Hackney Council, said he was concerned about “the ability of St Mungo’s Broadway (SMB) to deliver effective services” to its clients as staff roles are downgraded.
“We will be re-evaluating this contract to ensure we’re happy it will continue to supply the high quality of care we demand,” he said.
A resident at the Mare Street hostel, who claimed that security guards had been drafted in to replace striking staff, said: “The concern is if they cut pay and conditions we’ll end up with people who don’t care about the homeless.”
Bryan Kennedy, a Unite housing representative, had earlier warned cuts could affect future funding as services were run down and the charity’s reputation damaged.
He said: “Hackney awarded St Mungo’s the contract on the basis of not being the lowest bidder because they offer services other providers do not and have a good reputation for doing so.
“If word gets out that [Howard Sinclair] is running the service down, people will stop giving their money and then St Mungo’s Broadway won’t be able to provide those services.”
‘Retrospective consultation’
However chief executive Howard Sinclair said that while protecting the charity’s reputation and charitable funding was important, changes were necessary due to funding pressures and increased demand.
Mr Sinclair took over the new charity when St Mungo’s, a housing charity for the homeless, and Broadway, an employment charity for the homeless where he had previously been in charge, merged in April this year.
Accused of importing an “arrogant and controlling” managerial style, Sinclair implemented the new terms and conditions during the summer before consulting staff.
He is alleged to have called it “retrospective consultation”.
In a statement Sinclair said: “Our board responded to feedback from individuals about original proposals during a two month consultation period and made amendments to some of those proposals.
“We did not receive any specific proposals from Unite representatives during that consultation, nor have we since.”
Unite members outside the hostel on Mare Street. Photograph: Bryan Kennedy
But a striking worker said: “We got emails telling us what they were doing and we could add our bit, but it wasn’t a consultation. They should have gone through the union.”
Around 400 Unite members – a turnout of 67 per cent – subsequently voted 98 per cent in favour of a seven-day strike that ends on Friday 24 October.
Nicky Marcus, Unite’s regional officer, described the action as unprecedented.
She said: “These workers don’t take strike action easily. They care passionately for their clients. Some of them are ex-clients themselves, but they know what happens if you end up with cheap labour and a high staff turnover.”
Rally
Yesterday dozens of striking staff from across London held a rally outside Hackney Town Hall.
A Mare Street hostel project worker, who did not want to be named, said: “We know they’re going to restructure us at some point so I will probably lose £5,000 a year. The job we do is not easy.
“You have to deal with overdoses, people who use alcohol. I’ve found someone in a room who had passed away. How can we do such a difficult job working with the most vulnerable and not be able to afford to go on holiday or be worrying about bills? I’d have to get another job.”
Sinclair fuelled further anger on Saturday after he reportedly told staff picketing outside the Mare Street hostel he would simply sit the strike out and await their return.
One of a number of striking workers who heard the comments said: “He [Howard Sinclair] came to Mare Street on Saturday and admitted they should have consulted with the union and staff first, but then said he’s just going to wait for the strike to finish and carry on. He doesn’t give a damn.”
With no talks between the union and management planned – despite both sides saying they are ready to do so – staff said they will have a meeting with the union next week to discuss further action.
Union representative Bryan Kennedy warned: “If this goes to arbitration Sinclair will lose as he failed to consult with staff. He’s come up with the term ‘retrospective consultation’ but there’s no such thing. He’s put himself in a very difficult position, so the board [of SMB] needs to step in.”
Cut pay for workers
Increase pay for Chief executive
Downgrade the service so you can get a tie in with some bottom feeder like Serco and then give yourself another pay rise Howard
Services? Vulnerable adults? Charitable objectives? OUT! Payrise for Greedy people who already have more than enough? IN!
It beggars belief that Howard Sinclair is stating on the record that he consulted with staff. All the terms and conditions changed July. The ‘retrospective consultation’ commenced late July and ended late September. One day after the ‘retrospective consultation’ ended the Board of Trustees met and rubber stamped the changes bar a few measly and risible amendments that amounted to very little for the frontline workers affected by these changes. It is untenable for Howard Sinclair to remain in his position as this is not the first time he has misrepresented the facts to explain his disgraceful actions. The financial accounts used to explain the reasons for these actions both to staff and the Union are questionable and there is no proof whatsoever that these changes are necessary due to current financial pressures.
Howard Sinclair has acknowledged this himself by stating to all staff that he realises the retrospective consultation was a mistake and will not happen again unless there is a clear emergency business case to do so. Sadly due to a lack of transparency this business case is still to be made by Howard and the Board of Trustees.
It is also a misrepresentation of the facts for Howard to state that the Union have brought nothing to the table. They have repeatedly tried to put forward alternative options but Howard in his arrogance thinks he can bypass the recognition agreement and ignore the majority of his staff and starve them in to submission. How many livelihoods and lives have to be put at risk before Howard Sinclair and the Board of Trustees do the decent thing and resign?
Mr Sinclair did this to his previous organisation and figured he could do the same. I’ve worked in this organisation for over 10 years and have immense pride in my organisation as well as a lot of love. That’s been dented since he came into the organisation, i am not the only one who feels this way. You expect this sort of behaviour from a private equity firm, not from a charity that looks after the most vulnerable in society.
And before you go off thinking that isn’t my problem, it is and i will tell you why.
We work with people to help them to help themselves to recover and then contribute to society rather than being seen as a drain on it. If these measures get through you’ll end up with staff maintaining the status quo, containing people rather than dealing with their complex issues….and ultimately that will cost you, the tax payer, more money in the long run.
Would you rather pay a bit more for a service that has the expertise to help people turn their life around or pay less now then pay more later as a result of not having the competent and professional staff who have the skills and expertise to help individuals get their lives in order and move on with their lives?
Howard and his cultish gang have a mantra that “experience does not equal quality” they seem to be using themselves as proof of this maxim! After 12 years as CEO failing to make Broadway financially viable he is now applying the same failed model to the previously successful St Mungo’s. Definition of madness : keep doing the same thing even though the evidence is it does not work
Solidarity to St Mungo’s Broadway workers who took the brave decision to strike. This dispute is important not only for their organisation, but for all the front-line staff working in the social care sector.
Let’s put an end to this race to the bottom.
It’s about time St.Mungos Broadway had the balls to slash pay and impose tougher working conditions on their staff. Wouldn’t it be better if the staff were so impoverished that they had to live in the hostel they worked in? Then they could work 24 hours a day for food and board, just like the good old days. The hostel residents could sell matches to contribute. A paid management of bourgeois do gooders could pop in from time to time to supervise the hostel operations at minimum cost to the state. Britain would be great again! Errr…NOT!
Well done for going on strike and fighting back.
Is there a strike fund we can contribute to?
Terrible high handed management. Why are there cuts when Resonance Fund Ltd claim to have raised over £100m to purchase move in accommodation for long term hostel clients? Where is this money going if nit to provide the appropriate amount of support vulnerable long term homeless people need, to move into the PRS successfully?
Howard is just another spiv in a suit who is using commercial means to drag Broadway St Mungo’s into The ground. What kind of board of governance approved this payrise for himself and the HR Directors?
Another homeless charity becoming a property developer. Shame on them.
http://www.theguardian.com/uk-news/2014/oct/24/g4s-serco-pay-out-100000-youth-restraint-claims-stc
Howard “there is a lot the voluntary sector can learn from private sector such as SERCO” Sinclair
See link above for strike fund
Read more on it here:
http://www.theguardian.com/voluntary-sector-network/2014/oct/24/why-were-striking-st-mungos-broadway-worker-shares-motivations
It is dispiriting to see all these hard working staff losing pay, forced to go on strike due to Howard Sinclair and Paul Doe’s intransigence and inept management. The rhetoric used by Howard and Paul Doe regarding Unite negates the fact that Unite are representing the majority of his staff. These staff include Directors, Area Managers, Manager, project workers, specialist staff, cleaners, maintence staff, locums, staff from IT, finance and central services. A damning indictment on Howard, his executive team and the Board.
Another worrying fact that has come out seems to be that Real People and Real Lettings, companies that Broadway have brought with them in to the organisation are being subsidised by the charity as they do not break even in their own right. This needs to be investigated as a matter of urgency by the charity commission and sadly I will not be supporting St Mungo’s Broadway until I am assured that all of these irregular practices will cease.
A re-evaluation of the contract is good news. It gives the local community a chance to feed into the process – particularly issues around anti social behaviour, security, and noise – and the knock on effects of mungos, Shuttleworth, lifeline etc. These issues abated in the last six months, but it would be good to lock in standards and a minimum level of responsibility.
Shuttleworth hotel on well street is a disgrace and the source of most of the ASB in the area, over 100 people crammed into tiny “bedsits” so that the owner can claim the maximum Local Housing Allowance of £255 per week each person and giving no support or management at all
these people are damaged and a danger to themselves and others including the residents and staff at St Mungo’s as well as the wider community, they need proper support not a rip off landlord who is only interested in the money
In light of this incompetent management teams refusal to negotiate and the outrageous news that retiring charity CEO Charles Fraser took a £160000 payoff on top of his already very generous pension earlier this year workers have reluctantly but firmly taken the decision to strike for another 10 days from 5th November
sort it out people
I’m interested to know how things are going now. I’ve always previously supported St Mungo’s, but if Howard Sinclair is running it as a business and paying himself a big fat salary then I’d prefer to give money to a small local charity. And well done Unite – the clearest case of why we need unions I’ve ever seen.
Howard and St Mungo’s now ensconced in luxury corporate office by Tower Bridge.
plenty of small local charities doing good works where the money will go directly to the homeless