Anger as care home closure leaves staff owed thousands

Published on Thursday 15 May 2008 10:28

CARE home staff are furious that they are still waiting for thousands of pounds in redundancy pay, two months after they lost their jobs.

More than 80 people were made redundant when the troubled Cockenzie House Nursing Home closed in March.

It had been criticised in a report by the Care Commission, and owner Jim McDonald said he could no longer afford to keep it open.

All the residents have now been moved to other homes.

But staff fear they may face a long wait for redundancy pay due to a dispute between Mr McDonald and East Lothian Council.

He claims he cannot afford to pay them because the council owes him 150,000. But the council denies this, saying it is his responsibility to ensure staff are paid.

Karen Martin, of Prestonpans, who had worked at the home for six years, is owed about 1400.

She said: "It's disgusting. It's the employees who are losing out here. I was lucky to get another job straight away, but I'm not working as many hours as I did. A lot of the girls aren't working at all. They were the breadwinners, and now they are scrimping and saving.

"It's really difficult for a lot of them, especially if they have kids. Some are owed 5500."

She said she and her husband might be forced to cancel their summer holiday. But she did not blame her former employer.

She said: " He did everything in his power to keep it open. But the council and him don't get on."

Mr McDonald decided to close the home after the Care Commission imposed a ban on new admissions last year. It criticised the home for failing to meet standards of health care, nutrition and food hygiene.

But relatives, local doctors and community leaders had campaigned to keep it open. They said it provided a good standard of care, and the only complaints related to minor issues.

Former staff received a letter from Mr McDonald yesterday, reading: "I'm not able to pay redundancy at the moment as East Lothian Council has not paid Cockenzie House the last five payments of the contract. As soon as I get paid, I will pay you."

He has claimed that he has not yet been paid 150,000, which he was promised for keeping the home open until the end of March, while another home was being prepared for residents.

But East Lothian Council has denied breaking its contract with Mr McDonald. Ruth Currie, the council's adult social care leader, said: "It's Mr McDonald's responsibility to pay his staff."

A council spokeswoman added: "Any concerns he may have regarding council funding would be inappropriate to discuss in public."

Mr McDonald could not be reached for comment.