|Have Hedge funds and ‘corporate raiders’ moved into the charity sector?|
According to Unite, the union, ‘new swingeing cuts to pay, and changes to policies and procedures governing working conditions at housing charity St Mungo’s Broadway have prompted a strike ballot of more than 500 workers’.
The source of staff discontent is, according to Unite regional officer Nicky Marcus, ‘a bizarre coup d’état’ which ‘has seen Broadway, a ‘struggling’ organisation of 200 employees making year on year deficits merging with the highly successful 1,000- strong St Mungo’s and to all intents and purposes taking it over completely’.
According to Unite, the ‘merger’ has resulted in 4 of the 7 new executive team, including the chief executive and the director of HR, coming from Broadway. The new executive team have imposed sweeping changes to workers' terms and conditions without consulting or negotiating with the union. Nicky Marcus alleges that the new bosses had given themselves the customary massive pay hikes, including £30,000 for the new chief executive Howard Sinclair.