MORE than a dozen workers could be axed as part of a shake-up at a Southend housing association just months after it won a £58million cash injection.

South Essex Homes, which runs 7,000 council homes on behalf of Southend Council, is considering slashing up to 15 jobs to “reshape” its business.

It comes after the association, called an arm’s-length management organisation, was awarded two stars by the Audit Commission during an inspection, which means it is now entitled to £58million from Whitehall.

The cash will be spent on a programme of improvements which will last five years and see new kitchens, bathrooms and windows installed in council homes.

But trade union Unison has condemned the proposal to reduce staff by up to eight per cent, which it says will affect the service to tenants.

Unison branch secretary Claire Wormald said: “It seems madness for Southend Council and South Essex Homes to go all out for their coveted two star status and then chuck staff on the scrapheap. Without dedicated staff there is no service to tenants.

“Up to 15 people may end up at the job centre no longer earning and no longer spending in the town. This delivers nothing to tenants and just harms local services and the local economy.

“South Essex Homes is certainly ‘arm’s length’, it’s a way of Southend Council cutting jobs and services at arm’s length. Both organisations need to shoulder their responsibilities and find the cash to invest.”

Spokesman Lynsey Stephenson said: “As well as bringing significant extra investment to the local economy, this new phase in the company’s life also provides us with an opportunity to reshape our business to ensure we continue to provide tenants with value for money services.

“This reshaping will mean a small number of existing roles within the company being changed, so we can continue to provide high quality services.

“We have had constructive discussions with Unison and intend to continue to consult them before finalising proposals for future changes.”