Corporation staff to strike over 4% pay offer

Housing Corporation staff across the country are set to go on strike on Monday over pay.

The strike comes as a union survey reveals that morale among staff is at rock bottom.

And it means new chief executive Jon Rouse will be joining an organisation that has faced industrial action twice in a year. In April 2003, a walk-out over staff redeployment and pension rights was called off at the 11th hour.

However, trade union Amicus – which, with Unison, represents more than half the corporation's 600 staff – said it wanted to build a positive relationship with Rouse and end the internal strife.

Amicus regional officer Mike Barkes said: "We understand there is a new chief executive coming in on 1 April. We would encourage our members to forge a more positive relationship with him and put this behind us."

Last month, 118 of the corporation's staff voted to go on strike. They said the pay rise of 1.3% performance-related pay and 2.7% to reflect the cost of living was too small. One staffer said: "Everybody sees it in comparison to the 12% the executive got in performance-related bonuses in 2002. The cost of living award doesn't reflect the cost of living; inflation last year was around 3%."

However, the unions did not specify what percentages they would prefer.

We see the 4% pay rise in comparison to the 12% the executive got in performance-related bonuses in 2002

Housing Corporation staffer

A corporation spokesman dubbed the strike "pointless" and said four out of five staff did not support a strike. He said: "The award is the best we could make and reasonable in the current economic climate. Coupled with improvements in leave and other conditions of service, the overall package is attractive."

He said the survey had been carried out to get support for increased pay. He said: "We are obviously disappointed and baffled by the survey results but they must be considered in the context that it was not carried out independently. The questions were leading, one-sided and included incorrect information."

Massive dissatisfaction over the pay offer was just one of the issues raised by the survey of 330 staff, 233 of whom were union members. There was also concern about IT outsourcing and the corporation's restructuring programme, and staff felt the organisation did not listen to them sufficiently.

The executive did not handle its controversial IT outsourcing deal properly, according to 96% of respondents: the body called in a private detective after a memo on the multimillion-pound deal was leaked (HT 28 February, page 9).

The corporation's director of investment and regeneration for the South, Clive Turner, is leaving his job.

He has taken a post as corporate director responsible for housing at Plymouth City Council.