Southern Cross Healthcare to scrap 3,000 jobs

Wednesday 8th June 2011, 12:32PM BST.

Southern Cross Healthcare
Southern Cross Healthcare

Southern Cross Healthcare today revealed plans to cut 3,000 jobs in the latest blow to staff at the crisis-hit care homes operator.

The company, which is responsible for looking after some 31,000 residents including nearly 200 people in Shropshire, said the move was essential to address “staff effectiveness” across its 750 homes.

Southern, which employs 44,000 staff including 292 staff in the county, said the proposals to cut the workforce by nearly seven per cent, were part of its programme of change launched 18 months ago.

Southern recently warned it was in a “critical financial condition” as it unveiled a £311 million loss in the six months to March 31. The company, which has homes in Telford, Wem, Whitchurch, Oswestry, Newport and two in Shrewsbury, is underpaying its rent by nearly a third until the end of September in a move to buy it time to find a longer-term solution to its woes.

As well as uncertainty over the future of the firm, staff and residents have faced speculation that as many as 200 homes could be closed or offloaded to other operators. Paul Kenny, general secretary of the GMB trade union, called for financial backing from the Government to support Southern Cross.

A process of consultation has begun on the job cuts as well as the potential implementation of a “standard contract of employment” for new and existing staff.

Southern said it expected the whole process to be completed by October.

Home managers, deputy managers and relief managers, activity co-ordinators and administrators will not be affected, it added.

Jamie Buchan, Southern chief executive, said: “We are engaging with colleagues to put in place the best possible staffing model for our future needs, and one which fully embraces the best practice available to us.”



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