Fears of job losses and fewer operas at crisis-hit ENO

Many staff at the crisis-hit English National Opera fear that they will lose their jobs as part of a radical plan that would see the company close for 16 months and go part-time when it reopens.

With the opera still reeling from the shock departure of Nicholas Payne, the general director, speculation is mounting that managers are planning dramatic changes.

The ENO is due to close for seven months from June next year to January of the following year for the major part of a £41m restoration, which has been scheduled for completion by early 2004.

But the trade union Bectu, which represents technical staff at the ENO's home at the London Coliseum, said there were now fears of a much longer closure of more than a year – a move that would contradict previous promises.

And staff are worried that the Coliseum's management will take advantage of the closure to push through new contracts, in effect terminating the company as it currently exists. The scaled-down opera house would also present fewer productions.

Willy Donaghy, a Bectu representative, said this would be the beginning of a downward spiral. "In terms of being together as a company, it would have a devastating effect," he said.

"Although this is speculation at the moment, as a trade union we have always resisted the casualisation of our members and workplace. We will take whatever action the members deem appropriate to preserve their jobs both now and in the future."

The atmosphere is feverish at the English National Opera, where Nicholas Payne stood down suddenly a fortnight ago. Insiders suggested that he had clashed with Martin Smith, the businessman who chairs the company's board.

Mr Payne had been responsible for commissioning successes such as Mark-Anthony Turnage's The Silver Tassie in recent years.

However, his resignation followed a season of critical drubbings and low attendances, contributing to a six-figure deficit. His responsibilities have been "reallocated" to Caroline Felton, a management consultant who previously advised the ENO on carrying out an Arts Council "stabilisation" programme designed to put it on a sound financial footing.

An ENO spokeswoman said: "There are always inevitably a lot of rumours at times when someone resigns. At the moment there is nothing that has superseded the plans that are in place."

Those plans say that the Coliseum will reopen on 18 October this year after its usual summer break. But next year, it will stay closed during the autumn and reopen in January 2004.

A programme of concert performances will be held at the Barbican during the autumn of 2003, while the restoration work takes place. Sources who know the ENO said it was hard to imagine that a long closure and what would be in effect the disbanding of the company was being planned.

However, one source said it was possible that Martin Smith, the chairman who has also served the Orchestra of the Age of Enlightenment and the South Bank Centre, had asked for a complete review of the financial options.

One source said: "This is being played out as a garish Punch and Judy show with a nasty money-minded chairman and an idealistic general director. It's not as simple as that."

Dennis Marks, Mr Payne's predecessor, said the mission statement for the ENO was to bring accessible, affordable opera of the finest quality to the largest number of people.

"Over the years, this has been done on the basis of a permanent company in a permanent home with a permanent set of ideals and a company ethos," he said.

Although it seemed expensive to keep staff on full-time contracts, it would be far more expensive to hire opera singers and technical staff on a freelance basis.

"They might look at ways of doing things more economically or cost-effectively but I don't believe they're saying they'll accept casualisation," Mr Marks said.