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Board member Mike Parish |
Probe launched into care staff wages cut
Board slashed pay but paid themselves generously
A MAJOR investigation will examine how Islington Council and a private contractor forced 83 care home workers to have their wages slashed almost in half.
At the same time, today (Thursday) the Tribune publishes the pictures of the board of Care UK, who approved the cuts.
Workers employed by the firm in residential homes for the elderly face a cut in wages from £23,000 to £12,000 because the company says it is not making enough money in Islington.
The workers are being asked to sign away their long-standing employment rights in exchange for one-off payments of between £12,000 and £23,000.
The Town Hall taskforce into the Care UK fiasco will be headed by deputy chief executive Andy Jennings, following pressure from the unions and opposition Labour councillors.
Last year, the Tribune revealed how Care UK was able to put 83 staff on the minimum wage with the help of a £1 million “sweetener” payment from Islington Council.
Labour councillor Phil Kelly has accused the Town Hall of “paying to force people into poverty”.
Unions have welcomed the investigation after claims that the Town Hall “deserted its staff”.
Andrew Berry, deputy branch secretary of trade union Unison, said: “I hope it will be truly independent and the report will be publicly available. Everything to do with this case has been kept secret.”
The episode had raised concerns about the way privatisation of services was undertaken by the council, he added.
Cllr Kelly said: “Will they in future realise they cannot get away with employing people on the cheap?”
The staff cuts in Islington are in stark contrast to generous packages earned by the Care UK board.
Its Companies House return from last year shows that in 2004-05 chief executive Mike Parish earned £275,000, plus a benefits and bonuses package of £85,000.
Group finance director Paul Humphreys took home £189,000, including benefits.
Non-executive directors earned between £17,000 and £45,000. One of them, John Nash, had shares valued at £4,306,779.
Care UK was brought in to run Islington’s residential care homes for the elderly in 2003.
The £1 million payout freed the company from a pay-and-conditions package for ex-council staff who transferred to the company in 2004.
A Care UK spokeswoman said: “The proposed changes to the contract are driven by a desire to ensure the council receives best value for money. The changes will result in savings for the council and the borough’s council tax payers while at the same time ensuring there is no reduction in the quality of care for residents.
“Contrary to some misinformed comment, the changes will have no effect whatsoever on the balance sheet of Care UK.”
The spokeswoman added: “Care UK’s proposed changes reflect standard terms and conditions within the care industry. Already the majority of staff employed on this contract are on these terms.”
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