Dr Awotona joined South Tyneside District Hospital in 1995
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Health trust managers on South Tyneside have refused an employment tribunal order to reinstate a consultant who won an unfair dismissal claim against them.
A tribunal ruled that Feyi Awotona, 48, had been unfairly dismissed from her £68,000 a year job by South Tyneside Health Care NHS Trust.
But the trust has refused to reinstate the obstetrician and gynaecologist.
Employment tribunals can order reinstatement but cannot force employers to comply.
The health trust says it would be impossible for Dr Awotona to return to the hospital and work alongside former colleagues.
A spokesman for the Department of Trade and Industry, which oversees industrial tribunals, said if someone was not reinstated they could go back to tribunal for an increased compensation claim.
Dr Awotona, from Gosforth, Newcastle, was sacked in December 1998 for "gross personal misconduct".
Compensation to be set
Dr Awotona claimed she was sacked after she raised concerns about levels of care at South Tyneside District Hospital in 1998.
The tribunal found she had been dismissed because she had been collecting evidence against her bosses for a racial discrimination claim.
Earlier this month the tribunal ruled in her favour bringing a four-year legal battle to an end.
Dr Awotona was awarded almost £150,000 in back pay and is in line for compensation, which is yet to be set.
The tribunal also ordered the trust to reinstate Dr Awotona by 1 April.
High standards
A spokeswoman for South Tyneside Health Care NHS Trust said: "The board has decided that it is unable to reinstate Dr Awotona to her previous position of consultant obstetrician and gynaecologist, following her dismissal in 1998.
"In reaching the decision, the board's first priority was to ensure the continued delivery of the highest standards of healthcare for the people of South Tyneside.
"It was clear from discussions with a significant number of staff that reinstatement would result in a serious loss of key clinical personnel who would be able to secure posts elsewhere in the area.
"Such a loss of personnel across a wide range of specialities would, the board believes, have a genuine adverse impact on the standard and quality of healthcare available to the local population.
The Nigerian-born doctor, who came to Tyneside in 1995 after working in large London teaching hospitals said she had no comment to make on the health trust's decision.