Connaught was due to take on the 235 workers from the council-controlled City Building yesterday. But the BBC reported that Connaught has balked at the size of the pension liability of the new staff. They now have no official employer.
Staff turned up for induction training with Connaught at Hampden stadium on Monday. But they were told that this would not go ahead.
Glasgow Housing Association (GHA) held a meeting with City Building and Connaught and Monday night and said it would continue to mediate until the situation was resolved.
Connaught said it had learned of the pension liabilities it would need to take on for the new staff relatively late. It said they were "significantly higher than had previously been indicated".
A spokesman added: "“We are continuing to pursue all possible avenues to bring this situation to a resolution as quickly as possible, in order to provide peace of mind for tenants and that staff that were to be transferred to us.”
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