A housing association which has fallen foul of the government’s policy to cap rent increases to inflation is to lose 15 employees.
Hastings-based 1066 housing association was put under supervision last week as the Housing Corporation made two statutory appointments following concerns over its financial viability (Housing Today, 31 August).

It has now emerged that director of development Keith Wrate has been made redundant, along with a further 11 members of his department. Three unfilled vacancies are also being scrapped.

Development funding to the association has been halted.

Chief executive Keith Donaldson has already been offered early retirement.

Union representatives warned that morale at the association was low. "For staff as a whole the news of the Housing Corporation intervention has come as a shock and we are still reeling from its impact," they said in a letter to Housing Today. "Staff morale has plummeted. Yet staff will be needed to make a positive impact to the contribution to the future of 1066."

"An increased redundancy package to compensate those who are losing their jobs could also have made a positive contribution to this future."

Those made redundant will receive a reduced pay off after the board rejected a more generous package offered by management, the union said. Unison representative Paul Buswell said: "We are in consultations but we are sceptical on the outcome of the negotiations."

Employees with the organisation for less than two years will receive no redundancy payments.

A 1066 spokesman confirmed the development department redundancies: "The board has decided to stick with its existing redundancy package. Employees who have been here less than two years will get the standard notice payment but no redundancy."

He said the board was in discussions with former chief executive Keith Donaldson over an early retirement package.

Source

Housing Today