Southern Cross Cuts Conditions - Pays City

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A topic from News & Current Affairs: Health

laresThu 16/06/11 23:48

"Southern Cross staff are being asked to agree to harsh new working conditions which one care worker described as "the modern-day equivalent of slavery".

A copy of the company's proposals, obtained by the Guardian, "invites" employees to sign away basic employment rights such as being paid for lunch breaks. Southern Cross, Britain's biggest care homes operator, is struggling to stave off insolvency and has agreed in principle to hand back hundreds of its 750 homes to landlords because it can no longer afford to pay annual rent of £230m.

The company is cutting 3,000 staff and attempting to impose a new contract of employment on workers, many of whom already work 12-hour shifts and are paid little more than the minimum wage of £5.90 an hour.

Southern Cross's proposals, which are under discussion with the GMB union, include staff being temporarily laid off if the company deems there is insufficient work, pay and hours being cut or increased by 20% each way, employees carrying out duties other than caring (such as cleaning and cooking) and in some cases agreeing to opt out of the European working time directive that limits the amount they can work to 48 hours a week.

The plans also propose that carers should be prepared to work in different homes "within a reasonable area". Unions say this last demand would jeopardise staff relationships with individual patients who depend on carers for friendship as well as support."

http://1sq.me/iJJn1M

Meanwhile...

"Southern Cross, the care homes group that is teetering on the brink of collapse, is paying City firms £500,000 a week for crisis advice, it emerged today - only hours after the company sacked 3000 nurses and other front-line staff to save money.

The Evening Standard has learned that Southern Cross is paying a massive £2 million per month to some of the country's biggest banks, accountants and law firms, while at the same time pleading poverty to the taxman and its landlords.

Accountants KPMG, legal giant Clifford Chance and investment bank Greenhill are raking in the lion's share of the restructuring fees.

Questions were raised about a conflict of interest at KPMG because until September the consultancy giant also worked as internal auditor to the Care Quality Commission, the Government's care-home regulator.

PR firm Financial Dynamics - which represents at least four of the UK's biggest elderly care providers - is also earning fees from Southern Cross.

The news comes as the care homes group is reported to be negotiating with the Government to defer VAT payments to help its cash flow."

http://1sq.me/iwX6TM

...and this is the model of the NHS the ConDems want?

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