MEMBERS of the UNISON and UNITE unions at Warrington are to be balloted over possible strike action following a breakdown in pay talks with housing group Torus.
The unions claim the housing group – which includes Golden Gates Housing – is seeking to impose a real-term pay cut on staff, despite their offer being rejected by union members.
Unison joint branch secretary Jason Horan said: “UNISON and UNITE informed Torus that the offer had been rejected and invited the employer to resume meaningful negotiations in order to avoid industrial action.
“It is very disappointing, therefore, that Torus have shunned the offer to re-open negotiations and have taken the decision to unilaterally impose the pay award to staff.
Staff at Golden Gates Housing Trust and Helena Partnerships Limited (both part of the Torus Housing Group) were offered a two year deal with a 1.5 per cent pay increase in the first year and 2 per cent in the second year. Inflation is currently 3.5 per cent – therefore anything below this is a real-terms pay cut.
“Union members felt that Torus’ pay offer was unsatisfactory after years of pay freezes, real-term pay cuts and in the context of Torus’ exceptional recent financial performance.
Last year, Torus’ profit increased by 45.7 per cent to a whopping £33.4m whilst the highest director’s pay increased by 20 per cent to £237,000.
Mr Horan added: ““Staff have been through a really turbulent time. Redundancies have meant an increased workload for the remaining workforce and a longer working week. Pay has been frozen and terms and conditions have been cut.
“The staff do very important work – ensuring housing is in good condition, making repairs, and managing lettings efficiently. They are very committed to serving the public.
“But things have been too bad for too long. Staff are saying that is enough is enough. They are not prepared to accept a further attack on their living standards.
“UNISON is hugely disappointed that the employer has walked away from negotiations and decided to impose the pay award, contrary to the express wish of staff.”
Commenting on the pay award for staff, a spokesperson for Torus said:”Torus has been in discussions with its trade union representatives since November 2016. A number of enhanced offers have been made and subsequently rejected during this 16 month period.
“The two-year pay award offer is fair and proportionate, in line with housing sector pay reviews and above the public sector pay cap. Our approach protects the needs of our customers and communities and allows us to manage our business costs in a responsible way to avoid the need for job losses in the future.
“In recent weeks there has been increasing feedback from staff who would like to receive the new rates and back pay. Taking this into account, the Board of Torus made the decision to implement the pay award based on the most recent offer made.
“No director has received a pay increase since the group was formed.
“Directors will receive the same pay award of 1.5% this year and 2% in 2018/19, as all staff members.”
Commenting on reported profit figures, the spokesperson said: “The surplus figures reported for last year are not representative. A lack of clarity from Government around funding for housing schemes meant that we had to stall our development programme in 2016-17. This has now been reinstated and the funds allocated. By the end of this month there will be 700 homes under construction and we plan to develop a further 700 units in 2018-19.
“In 2018/19 we will borrow more money to fund our development programme and expect our cash reserves to be exhausted by the end of March 2020. After this point we would need to borrow money to fund all future development activities.
“Torus is committed to providing homes that meet the needs of local people both now and in the future. Any profit we make is reinvested into existing homes and essential services or into developing more homes.”
