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Person is already a sessional employee with this employer, plus did the exact job (with fewer hours) last year on an advertised temporary contract. It's nothing to do with waiting for references or security clearance - that's all in place.
Last year's business operation was, shall we say, experimental. It was more than that because the top bosses expected it to flop but instead it was successful beyond anything they had imagined. That's why they advertised the extra, permanent post this year - to expand on that.
The offerer of the post is as p**d off as the applicant. She wanted a permanent member of staff whom she knew she could work with and can do the job. We will now wait to see what the confirmatory letter says (if indeed it can be called such if it contradicts the original, verbal offer as applied for). Acceptance with registration of reluctance/disagreement will then be the course of action, followed by some lengthy talks with the union, methinks. There may be some discrimination involved.