More than 20 staff working for a subcontractor on Sheffield’s Park Hill flats face the axe – but bosses say 200 jobs will be created when work starts on the next phase.
Developer Urban Splash is believed to have terminated a contract with an unnamed cleaning company, putting the posts at risk.
The subcontractor has given formal notification to the Government – which means at least 20 posts are at risk.
One of the affected workers, who did not wish to be named, said: “It’s really bad news for us – we had hoped to be kept on for the next phase of redevelopment.”
A spokeswoman for Urban Splash said: “We do not comment on staff and HR issues. However, the successful completion of the first phase of the redevelopment of Park Hill has seen the building transformed with a great mix of residents and commercial operators now occupying the space.
“It has also been shortlisted for the UK’s biggest design award, The Stirling Prize, and we look forward to hearing its success in that later this month.
“Given the success of this phase we are continuing to hold detailed negotiations with Sheffield Council and other parties to discuss funding for the future phases, something which will create around 200 jobs.
“We hope these will be successfully concluded shortly and look forward to making announcements about them soon.”
A date has not yet been set for the start of work on the next stage of Park Hill’s redevelopment. The complex is due to be revamped in five stages.
Coun Harry Harpham, Sheffield Council cabinet member for housing, said: “We are keen to get as much employment into the city as possible at this very difficult time.
“As negotiations are ongoing about the next stage of Park Hill, I cannot comment in detail but the creation of 200 jobs will be good news.”
Coun Harpham was unable to reveal an estimated completion date for Park Hill’s revamp – originally due to be finished in 2014.
But he ruled out further public money being used.