A PRIMARY care trust which has run community homes for people with learning difficulties in Kidderminster for many years has failed to be shortlisted after the tender came up for grabs.

Associate director of the North Warwickshire PCT, Mark Saunders, said he was "very disappointed" that their bid had been thrown out.

The organisation and its predecessors have managed and staffed the seven homes - some for more than 20 years.

It also runs a further seven community homes in Bromsgrove, with a total staff of 170 affected under the contract.

Harden Housing Association owns the buildings and has been the registered service provider, sub-contracting the care work to the North Warwickshire PCT.

It has now decided to pull out as care provider as from March 31, 2006, although it will continue to own the properties, forcing the county council's adult and community services directorate to re-tender the service.

A county council spokeswoman said the tendering process was still ongoing and she could not comment on who had applied or why the PCT had not been shortlisted because it was commercially sensitive.

If a private company wins the contract it will be obliged to take on the NHS staff under their existing terms and conditions.

A spokesman for UNISON, the public sector trade union, however, said that although under transfer arrangements employees' wages and conditions were protected, these could be eroded in years to come.