Staff working for the charitable arm of the Glasgow School of Art fear they will have no source of income after hours were slashed over concerns the organisation could enter liquidation.

More than 20 staff at The Art School, run by the Glasgow School of Art Students’ Association (GSASA), were told earlier this month that the venue was “two weeks from liquidation” and running up losses of around £4,000 a week since the end of term.

In the message to staff, The Art School director Alessandro Marini told staff if the existing business model was to continue, liquidators would have to be called within a fortnight.

Accounts submitted by GSASA for the year to July 2018 show substantial negative reserves totalling more than £160,000, and highlighting ongoing concern linked to a lack of income following the June 2018 fire at the school.

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As a result, the 25 workers were told they would be given no hours until at least September while accountants carried out a business review.

The email goes on to say: “These decisions have been very, very hard to make, but this is the only way to keep the GSASA open and we do so with the best intentions for everyone - students and staff - at heart.”

After being informed of the decision, a majority of staff were concerned about their ability to fend for themselves, contacting Unite the Union for legal support.

Adam Dransfield, a bar worker at the venue, said the situation showed 'complete incompetence' from the organisation.

He added: "For a very long time there have been concerns that the business model doesn't work. To not even acknowledge this to those whose jobs are affected is very serious."

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As a result, a grievance was submitted by workers to Mr Marini, as well as Glasgow School of Art’s Professor Irene McAra-McWilliam and Professor Nora Kearney.

The letter, signed by 75 per cent of those affected, states: “Cutting our hours to zero for at least the next month with no guarantee of work thereafter is going to have a profound effect on our ability to pay rent and afford to eat.

“Senior management at The Art School and GSASA must have known for months that The Art School was running at an unsustainable loss and failed to give us more notice.

“The punitive and unreasonable way in which The Art School has imposed these changes breaches the mutual trust and confidence inherent within our contract of employment.

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“The way we have been treated will have a profoundly negative effect on the reputation of the Glasgow School of Art itself.”

Following their disappointment at the decision to cut hours, staff have now requested their rota be reinstated, and The Art School agree to begin negotiations on the payment of a living wage to staff and minimum hours contracts.

Unite organiser Bryan Simpson said: “Our members at the Art School have been treated abysmally by what is supposed to be a charitable arm of one of the country’s leading educational institutions.

"Workers have had their hours cut to zero with absolutely no notice, which is morally if not legally unacceptable. The Student’s Association and by extension the GSA have taken advantage of the precarious nature of their worker’s contracts to cut costs and save money, leaving them destitute for the next month at least.

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"We would urge the leaders of the GSA and Student’s Association to intervene to ensure that their loyal, hard-working staff (many of whom are students) are not left destitute by the failings of previous management.”

"We want them to sit down with our members to discuss not only how we make The Art School financially sustainable but how we ensure that the workers can be assured of a real living wage and minimum hours they can rely on.”

A spokesman for GSASA said: "A spokesperson for GSASA Ltd. can confirm that this is part of an official internal grievance process, therefore it would be inappropriate for us to make any further comment at this time.”

Glasgow School of Art declined to comment.