Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Written Evidence


Supplementary memorandum by Battersea and Wandsworth TUC (THC 26(f))

UPDATE ON EVENTS AT SOLON WANDSWORTH HA BETWEEN ORIGINAL SUBMISSION AND 15 MARCH 2004

INTRODUCTION

  Since our original submission there have been a number of extremely worrying developments in the treatment of Solon Wandsworth Housing Association by the Housing Corporation and its appointees. You will recall that we used Solon Wandsworth as an example of the way in which the Housing Corporation was operating in our area.

  We are extremely concerned about the cavalier manner in which the association's Management Committee, under the direction of Housing Corporation appointees, is proceeding. Given that the association is under Housing Corporation supervision and subject to a Statutory Inquiry, it would appear that the actions taken must have been taken with the concurrence of the Housing Corporation.

UPDATE

  In January 2004 the Special General Meeting of shareholders (SGM) (and on earlier occasions) had passed resolutions requiring the Management Committee (MC) to seek the approval of shareholders before considering or implementing any re-structure or merger.

  For two years the MC had acted as though (reluctantly) bound by the SGM resolutions and indeed the "failure" of shareholders to agree the MC proposals in January 2004 was cited by the Housing Corporation (HC) as the principal reason for calling a Statutory Inquiry into the affairs of Solon Wandsworth.

  Following the SGM the MC had suspended its implementation of the staff re-structure (a process intended to remove Solon's traditional collective management structure).

  However, on 1 March 2004 the situation changed suddenly. Susan Reizenstein, Housing Corporation appointee and chair of the MC, announced that the MC had received legal advice that the resolutions were not binding on the MC and that it therefore intended to ignore them.

  Staff asked to see this advice as it was very different from the advice that the association's own solicitors, Devonshire's, had given to the association in December 2002. That advice had stated that the resolutions could bind the MC and the MC had been since then been acting on that basis. This advice was the only advice to the association that staff had seen and concurred with the advice given by solicitors instructed by the TGWU branch.

  Mrs Reizenstein refused to let staff see the new advice and on 3 March she announced that the MC had appointed a Rita Dattani as "Interim Chief Executive".

  Staff were unable to find any record in MC minutes of any decision either to ignore the resolutions or to appoint an "Interim Chief Executive".

  Given that:

    (a)

    staff were unable to see any legal basis for the actions of the chair; and

    (b)

    there had been lawful continuing industrial action short of a strike since January 2003 which required TGWU members not to co-operate with the implementation of a new structure until a Security of Employment policy had been agreed;

staff found themselves in an extremely difficult position when asked to co-operate with and provide facilities to an "Interim Chief Executive" (ICE) whose legal appointment the MC were not prepared to substantiate.

  Furthermore, it had emerged that the ICE was not employed by Solon Wandsworth, but was an associate of HACAS Chapman Hendy, a housing consultancy employed by the MC to formulate re-structure plans. The appointment had occurred following an interview with a director of HACAS Chapman Hendy and Mrs Reizenstein in direct breach of all the association's equal opportunity and recruitment procedures.

  The representative of the recognised trade union (the TGWU), Seamus MacBride, found himself in a particularly difficult position when asked to connect the ICE to the association's ITC systems and refused to do so in the absence of any demonstration of her legal appointment.

  On the evening of Friday 5 March Seamus MacBride, who is employed as an architect, but also looks after the IT system and security system on a voluntary basis as part of his collective duties, was carrying out IT maintenance work which could only be done when systems were not in use. At about 8pm he found that a person claiming to be a security guard had entered the building with apparent instructions to throw him out of the building. The guard was unable to produce any written authorisation. Seamus refused to leave until such authorisation was produced. During the course of these exchanges he was threatened both with police intervention and with the despatch of a further number of security guards to eject him. Eventually a letter of authorisation was faxed and Seamus left.

  The Solon Wandsworth building was occupied by the guards until 8.00am on the Monday and continues to be guarded every night between 6.30pm and 8.30am the following day.

  On the following Monday, 8 March 2004, Seamus was asked by Linda Hunt, the personnel worker, to come in for a chat with Rita Dattani and Susan Reizenstein. He asked whether he would need representation and was told that it was "not that sort of meeting—just a chat about the IT security."

  Notwithstanding this statement, Seamus took Geoff Martin of the Battersea and Wandsworth TUC with him.

  At the meeting, Seamus was given an ultimatum that if he did not give Rita Dattani immediate access to the IT system he would be subjected to immediate disciplinary action and possible dismissal. After conferring with Geoff Martin, he handed over the server password. After he had done so, Rita Dattani told him that he was suspended in order for an investigation of the IT system to take place.

  The conduct and outcome of this meeting were in in clear breach of:

    —  Solon Wandsworth's procedures.

    —  Natural justice and human rights.

    —  The law on the right to be accompanied and represented.

    —  ACAS guidelines.

    —  All civilised industrial relations practices.

  Seamus MacBride has not been told what is being investigated, why it is being investigated and what it is that he is alleged to have done or might be about to do that justifies his suspension.

  It is the firm view of the TGWU and BWTUC that this action has been taken in order to remove Seamus from the scene while the ICE and MC press on with the re-structure. The requests of TGWU members to be accompanied and represented by Seamus at various procedures that are part of the re-structure are being refused.

  We now understand that the "investigation" of the IT system by the association's IT maintenance company is now complete and has found nothing untoward. The association refuses, however, to unsuspend Seamus and has announced a further investigation of the IT system by an external contractor.

  We are extremely concerned about the cavalier manner in which the association's MC, under the direction of Housing Corporation appointees, is proceeding. Given that the association is under Housing Corporation supervision and subject to a Statutory Inquiry, it would appear that the actions taken must have been taken with the concurrence of the Housing Corporation.

  Not only have the actions described been taken against staff but the MC has also arbitrarily cancelled a planned meeting of tenants. This is a clear breach of the HC's Regulatory Code and tenant involvement policies which require full consultation.





 
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