Staff at St Mungo’s homelessness charity have accepted a pay offer, after three months of strikes.
The strike began on 30 May and staff then extended their month-long strike “indefinitely” from 27 June over pay.
The dispute involved Unite members across southern England including in London, Bristol, Brighton, Oxford, Bournemouth and Reading.
St Mungo’s said 90% of staff will receive a total minimum increase of £3,125 in 2023-24, which works out as a 7-15% pay increase, depending on salary.
The total cost to St Mungo’s will be just under £6m, the charity’s chief executive said.
Last month employees rejected a renewed pay offer from the charity of 3.7%.
The charity has also put a freeze on executive director and chief executive pay for the current year.
St Mungo’s: ‘Members have accepted the new pay offer’
Emma Haddad, chief executive of St Mungo’s, said: “Following a vote, Unite the Union has confirmed its members have accepted the new pay offer package we put forward on 18 August 2023.
“In this offer, everyone who is on up to and including point 36 on the National Joint Council (NJC) pay scale will receive £1,200 per year as a St Mungo’s allowance in addition to the annual pay award, which will be a minimum of £1,925 this year.
“This means over 90% of staff will receive a total minimum increase of £3,125 in 2023-24. This works out as a 7-15% pay increase, depending on salary. The total cost to St Mungo’s will be just under £6m.
The agreement also includes a number of non-pay items, including an increase in annual leave. As well as the pay rise, St Mungo's is offering an additional three days of annual leave for everyone and a permanent increase in the mileage allowance.
St Mungo’s said: “This vote resolves the dispute and ends a period of unprecedented strike action, and we understand Unite is asking people to return to work on Monday 4 September 2023.
“We are relieved with the outcome as we know this has been a difficult time for everyone involved. We look forward to working together with our colleagues and our partners as we continue to support people recovering from, or at risk of, homelessness.”
Unite: ‘This was a hard-fought battle resulting in victory’
Unite general secretary, Sharon Graham said: “This was a hard-fought battle resulting in victory for St. Mungo’s workers who are dedicated to helping the homeless.”
“The workers took action because they were under huge financial and mental pressure and they weren’t being listened to by management.”
“Unite will continue to defend workers when employers refuse to do so, in the fight for better jobs, pay and conditions for our members.”
St Mungo’s workers’ pay is normally pegged to local authority pay rates under the NJC agreement but the strike action has, for the first time, delivered a pay increase above the NJC rate.
Unite national lead officer Onay Kasab said: “The reps and activists have delivered a fantastic result plus hundreds of new Unite members. The pay deal isn’t just inflation beating it goes above and beyond previous pay deals at St Mungo’s which always matched local authority agreements.
“The workers are to be congratulated for their resilience and determination.”
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