GMB Call For4 Party Talks On SX
Monday 13th June
2011
GMB CALLS FOR FOUR PARTY TALKS
WITH LANDLORDS, OPERATORS, STAFF AND
GOVERNMENT ON FUTURE OF SOUTHERN CROSS AS LANDLORDS MEET
TODAY IN LONDON
The landlords have to face up
to the unpalatable fact that rents are at least £100m per year
above market clearing rates for these properties which is £60
per week per bed says GMB
GMB, the recognized union representing
a large number to the 42,500 staff caring for 31,000 elderly and
vulnerable residents in 753 Southern Cross care homes, today called
for four party talks to resolve the crisis facing the company.
Talks are underway today in London
where representatives of the 80 landlords are formulating a
response to the Southern Cross demand for a cut in rents of 30%.
This response is due to be discussed at a meeting on Wednesday
between the landlords, Southern Cross and Government.
GMB representing the staff have now
called for these three party talks to be extended to four parties
to allow the staff to be represented in these crucial talks. GMB
has sent a letter on this to Southern Cross, the landlords and
copied it to the governments in the 4 jurisdictions in the UK.
Last week Southern Cross presented
proposals to GMB that would see job cuts of 3,000 front line
medical, caring, catering and domestic staff, cuts in pay and hours
worked for many of the staff, plus changes to work patterns for
many other staff. GMB is in the process of meeting staff to
discuss the implications of these cuts for both residents and
staff.
Justin Bowden GMB National Officer in
his letter to the other parties said "Southern Cross is a
people business. With 42,500 staff making up some 55% of the
company's costs, they are fundamental to the delivery of service to
the residents and to the future of the business.
At the landlords meeting again
today and the meeting set for Wednesday of Government, landlords
and Southern Cross, there is a conspicuous absence of the staff's
voice in these discussions.
As ever changing events
continue to unfold, GMB believes the time is now right for the
company, the landlords, the Government and the union to come
together. GMB believes this should be without delay and I
look forward to discussions at various levels to facilitate
this.
I should be grateful if you
would advise my office by return of your agreement so that the
four-party talks can take place."
Regarding today's landlords meeting Mr
Bowden commented "The landlords have to face up to the
unpalatable fact that rents are at least £100m per year above
market clearing rates for these properties. That is £60 per week
per bed. (See note I below). Many of the landlords acquired the
properties at the top of the market but that is not a good enough
reason to insist on above market level rents. The landlords will
have to take the hit to enable Southern Cross to provide a decent
standard of care for the 31,000 for the elderly and vulnerable
residents."
End
Contact: Justin
Bowden GMB National Officer 07710 631 351 or GMB officers in
regions: Paul Maloney South East and South West 07801 343 839 or
Amanda Gearing West Midland 07957 265 678,or Barry Fletcher
Scotland 07921 885775 or Jon Smith Yorkshire 07918 905 615 or Kelly
Andrews Wales and Avon 07980 753 131 or Shaun Graham London and
Eastern 07885 706 556, or Martin McGinley East Midlands 07977
161 305, or Karen Atkinson North West 07740 8040 51 or Suzanne Reid
Northern Region 07870 176 728 or Eamonn Coy Northern Ireland 07968
109 355
Notes to Editors
1 GMB estimate that rents for the 753
Southern Cross care homes are £100m higher than they should be.
In January 2010 GMB wrote to
councilors to bring to their attention GMB's concern about high
rents charged by the owners of buildings, including NHP used
as Southern Cross Care Homes and the lack of transparency regarding
who owns the care homes and the financial returns to the ultimate
owners of the properties.
GMB told the councilors that use
Southern Cross to care for their clients, paid for with public
money, that if the beds were used for different purposes the market
clearing rents paid to the landlords would at least £100m less. If
the accommodation was used for students, for example, GMB conclude
that the total amount the landlords would receive is £121.8m.If the
space were made available for private residential use, GMB consider
that this would give rise to £139.5m in annual rental income.
There were 752 Southern Cross Care
Homes in the UK with a total of 38,603 care beds for the elderly
(September 2010).The published accounts for that period showed that
in 2010,Southern Cross paid £248.3m in rent to the owners of the
properties. GMB research indicates that up to half of the
properties were acquired by a company called NHP, of
which the ultimate parent company is Delta Commercial Property.
This is a company owned by the Qatari Investment Authority and is
registered in the Isle of Man. The financial returns for this
company are consolidated within Libra No.2 Ltd, a company
incorporated and registered in the Cayman Islands.
Southern Cross rents paid to the homes
acquired by QIA in 2010 equated to £6,444 per bed. This was a
1.5% increase on the 2009 figure when the rent was £6,348 per bed
which was a 4.9% increase on the 2008 figure of £6,050. This in
turn was a 3.1% increase on the 2007 figure when the rent per bed
was £5,866. This in turn was a 7.9% increase on the 2006 figure
when the rent per bed was £5,435. Thus in the past 4 years rents
have gone up by 18.6% at a time when property values were
falling.