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G15 landlords vow to engage staff as union raises concerns about merger plan
Two of London’s biggest housing associations have promised to engage staff as part of their merger talks, as a major union warned that they must not use the merger as an excuse to cut the jobs, pay, and terms and conditions of workers.
Unite the Union has called on Optivo and Southern Housing Group to guarantee that there will be no job losses as a result of their plans to join forces to become a 77,000-home landlord.
The two G15 landlords are yet to make such a pledge, but instead said they are “engaging” with colleagues and consulting with Optivo’s recognised union, Unison.
Optivo and Southern announced last month that they had begun merger talks, with a view of completing the union by the end of the year.
Optivo is the larger organisation, owning and managing 45,000 homes across London and the South East, while Southern would be the smaller partner with around 32,000 homes.
Unite said that its members in both associations have expressed concern about the future of their employment, and are distressed by a lack of assurances on potential redundancy plans.
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Steve O’Donnell, regional officer at Unite, said: “The only winners in this merger must not be the executives who will see their pay and bonuses increase at the expense of workers and residents.
“Unite won’t allow this to happen to our members at this new organisation, and they will have the union’s full support in protecting their livelihoods at a time when the cost of living crisis is putting extreme pressure on pay packets.”
In response to Unite’s concerns, a spokesperson acting on behalf of both associations told Inside Housing: “On the day merger plans were announced, we made clear commitments to involve colleagues, consult Optivo’s recognised trade union Unison and protect the best terms and conditions from both organisations. We’re engaging with all our colleagues about the proposed merger, including discussions with Unison and our staff forums to understand colleagues’ queries and concerns.”
Unite said that if the new 77,000-home landlord is to be viewed as a “progressive, modern employer”, it must recognise a number of demands that include allowing the union a seat at the negotiating table, no compulsory redundancies as a result of the merger and enhanced terms for any voluntary redundancy exercises.
In addition, Unite said it would like to see no cuts to current terms and conditions, alongside a levelling-up of pay and settlements that reflect the cost of living crisis faced by its members.
The Optivo and Southern spokesperson added: “Our colleagues’ views will be central to shaping the merger plans. We’ll also be running joint workshops so colleagues from Optivo and Southern Housing Group can work together with residents to shape the vision, culture and priorities for the new organisation. Everything we hear will be carefully considered and taken into account when shaping our final proposal.”
The spokesperson confirmed that although Southern currently has no union arrangements, the newly merged organisation will continue to recognise Unison and work closely with its representatives.
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