Jobs fear for 6,000 Scots as care crisis deepens

A trade union official representing the 6,000 Southern Cross employees in Scotland warned that there was "no doubt" the company's 98 care homes north of the Border would be affected by the job cuts.

Pressure was growing on the Scottish Government to step in to protect services and jobs at the homes, with a senior SNP MSP calling on ministers to make "every effort" to ensure residents continued to receive the care they need.

Southern Cross, which has 750 homes across the UK and cares for more than 30,000 residents, has already announced that it will underpay its rent for the next four months, as it struggles with a 230 million annual rental bill.

Sources claim that more than 300 nurses and 1,275 care staff are among those set to lose their jobs, with almost 700 catering posts being axed, along with 440 domestic jobs and 238 maintenance posts.

The leader of the trade union that represents Southern Cross staff warned the job losses would hit care homes in Scotland when the cuts are imposed.

Harry Donaldson, the GMB's regional secretary for Scotland, said: "There's no doubt that something will happen in Scotland with Southern Cross as a result of all this.

"This latest news will be a major concern for residents at the 98 homes in Scotland and will cause real concern for their families.

"That's why we're calling for the Scottish Government to intervene, and we want an emergency meeting with ministers, who we want to step in and reassure people that there will be ongoing care available for the residents of these homes."

The problems at Southern Cross have brought criticism of the way the company has been run, and in particular of its former private equity owner, the American buyout group Blackstone, which made a 1 billion profit from the sale of the business.

Senior SNP MSP John Wilson claimed the problems gripping Southern Cross had been caused by "financial mismanagement" at the firm.

He said: "I'm extremely disappointed at the decision to axe jobs that involve caring for elderly and vulnerable people. The need for these services will not disappear due to the decision taken by Southern Cross, which is due to the company's financial mismanagement.

"The Scottish Government must work closely with local authorities to ensure that there is no loss of services and to individuals in receipt of care at Southern Cross.

"The Scottish Government must also make every effort to save jobs."

Health secretary Nicola Sturgeon, who has held talks with Southern Cross bosses, said: "We have sought urgent clarification from Southern Cross about its restructuring proposals and what the implications are for the care homes and staff in Scotland.

"Our priority is to ensure provision for the care and welfare of all residents remains in place with minimum possible disruption. We are working closely with Cosla to ensure this continuity of care."

Southern Cross, which says the location of the job losses has yet to be decided, insisted that no homes would close as a result of the cuts.

Chief executive Jamie Buchan 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."

He added: "In developing this model during a very challenging time for both our company and the industry, we are determined that the process we undertake should be exemplary in terms of staff communication."

Darlington-based Southern Cross consequently saw its revenues drop by 3 per cent to 464 million in the first half of the year, as overall occupancy of its care homes declined by 3 per cent to just under 87 per cent.

The company launched its "New Horizons" programme of change 18 months ago, which was designed to look at all aspects of Southern Cross operations, including quality of care, staff development and costs.

Amid the public backlash, Southern Cross is looking at changing its name and is considering renaming itself Ashbourne Group, the name of one of its subsidiaries.