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You can find the current article at its original source at https://www.theguardian.com/business/2018/feb/05/carillion-jobs-axed-staff-redundancies
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| Version 2 | Version 3 |
|---|---|
| Carillion: another 450 jobs axed among former staff | Carillion: another 450 jobs axed among former staff |
| (5 days later) | |
| Redundancies take number of job losses at collapsed contractor to more than 800 | Redundancies take number of job losses at collapsed contractor to more than 800 |
| Rob Davies | Rob Davies |
| Mon 5 Feb 2018 14.28 GMT | Mon 5 Feb 2018 14.28 GMT |
| First published on Mon 5 Feb 2018 11.03 GMT | First published on Mon 5 Feb 2018 11.03 GMT |
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| The official receiver in charge of the remains of collapsed government contractor Carillion has announced 452 former staff will be made redundant. | The official receiver in charge of the remains of collapsed government contractor Carillion has announced 452 former staff will be made redundant. |
| It is the second wave of redundancies to be confirmed and takes the number of job losses to 829 from a 19,500-strong UK workforce. Small businesses have expressed concern that more could follow in Carillion’s sprawling supply chain. | It is the second wave of redundancies to be confirmed and takes the number of job losses to 829 from a 19,500-strong UK workforce. Small businesses have expressed concern that more could follow in Carillion’s sprawling supply chain. |
| The receiver, part of the Insolvency Service, has found new employers for 100 more staff who were working on private sector contracts, taking the number of jobs saved so far to 1,019. | The receiver, part of the Insolvency Service, has found new employers for 100 more staff who were working on private sector contracts, taking the number of jobs saved so far to 1,019. |
| The latest update comes the day before seven former Carillion directors give evidence to a committee of MPs about how a company with billions of pounds worth of contracts announced a profit warning in July and was in liquidation by the end of the year. | The latest update comes the day before seven former Carillion directors give evidence to a committee of MPs about how a company with billions of pounds worth of contracts announced a profit warning in July and was in liquidation by the end of the year. |
| Witnesses include the former chief executive, Richard Howson, who stepped down after the July profit warning, and the ex-chairman, Phillip Green, an adviser to Theresa May on corporate responsibility. | Witnesses include the former chief executive, Richard Howson, who stepped down after the July profit warning, and the ex-chairman, Phillip Green, an adviser to Theresa May on corporate responsibility. |
| Weeks after the company’s failure, 17,562 former Carillion staff are yet to learn of their future. | Weeks after the company’s failure, 17,562 former Carillion staff are yet to learn of their future. |
| NHS• Managed facilities including 200 operating theatres and 11,800 beds• Made more than 18,500 patient meals per day• Helpdesks dealt with 1.5m calls per year• Engineering teams carrying out maintenance work | |
| Transport• Built 'smart motorways' – which ease congestion by monitoring traffic and adjusting lanes or speed limits – for the Highways Agency• Major contractor on £56bn HS2 high-speed rail project• Upgraded track and power lines for Network Rail• Major contractor on London’s Crossrail project• Roadbuilding and bridges | |
| Defence• Managed infrastructure and 50,000 homes for Ministry of Defence | |
| Education• Designed and built 150 schools• Catering and cleaning contracts at 875 schools | |
| Prisons• Maintenance and repairs at about half of UK prisons | |
| Libraries• Managed several public libraries in England | |
| Energy• Built substations, overhead cables and other works for National Grid | |
| Hundreds have been temporarily transferred to other employers to ensure they continue to be paid and to keep vital public services running. | Hundreds have been temporarily transferred to other employers to ensure they continue to be paid and to keep vital public services running. |
| The receiver said the latest jobs to be saved were in the public sector, while those being made redundant are “connected with private and public contracts across different parts of the country, as well as back-office functions”. | The receiver said the latest jobs to be saved were in the public sector, while those being made redundant are “connected with private and public contracts across different parts of the country, as well as back-office functions”. |
| Carillion relied on major contracts, some of which proved much less lucrative than it thought. | |
| Earlier this year it slashed the value of them by £845m, of which £375m related to major public-private partnerships (PPPs) such as Royal Liverpool University hospital. | Earlier this year it slashed the value of them by £845m, of which £375m related to major public-private partnerships (PPPs) such as Royal Liverpool University hospital. |
| As its contracts underperformed, its debts soared to £900m. | As its contracts underperformed, its debts soared to £900m. |
| The company needed a £300m cash injection, but the banks that lent it money refused to put more in. | The company needed a £300m cash injection, but the banks that lent it money refused to put more in. |
| The government also refused to step in and bail the firm out. | The government also refused to step in and bail the firm out. |
| That left the company unable to continue trading and forced it to go into liquidation. | That left the company unable to continue trading and forced it to go into liquidation. |
| “We appreciate this will be a difficult time for those who have lost their jobs,” said a spokesperson. | “We appreciate this will be a difficult time for those who have lost their jobs,” said a spokesperson. |
| “Jobcentre Plus’ rapid response service stands ready to support any of these employees by providing advice and information so people can move into a new job as quickly as possible. | “Jobcentre Plus’ rapid response service stands ready to support any of these employees by providing advice and information so people can move into a new job as quickly as possible. |
| “People who have been made redundant will also be entitled to make a claim for statutory redundancy payments. | “People who have been made redundant will also be entitled to make a claim for statutory redundancy payments. |
| “Our efforts are focused on the smooth transfer of Carillion’s contracts to new providers and we will continue to keep Carillion’s workforce updated as these arrangements are finalised.” | “Our efforts are focused on the smooth transfer of Carillion’s contracts to new providers and we will continue to keep Carillion’s workforce updated as these arrangements are finalised.” |
| Carillion | Carillion |
| Construction industry | Construction industry |
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