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| City Link: 2,000 staff to be made redundant on NYE - RMT | City Link: 2,000 staff to be made redundant on NYE - RMT |
| (35 minutes later) | |
| More than 2,000 staff from the collapsed UK parcel delivery service City Link are to be made redundant on New Year's Eve, the RMT union has said. | More than 2,000 staff from the collapsed UK parcel delivery service City Link are to be made redundant on New Year's Eve, the RMT union has said. |
| Staff learned on Christmas Day that the company had gone into administration, in a move described as "disgraceful" by the union for transport workers. | Staff learned on Christmas Day that the company had gone into administration, in a move described as "disgraceful" by the union for transport workers. |
| Talks between union officials and administrators Ernest and Young were held on Saturday afternoon. | Talks between union officials and administrators Ernest and Young were held on Saturday afternoon. |
| Ernest and Young warned of "substantial redundancies over the coming days". | |
| Coventry-based City Link, which is owned by investment firm Better Capital, employs 2,727 people. | Coventry-based City Link, which is owned by investment firm Better Capital, employs 2,727 people. |
| It called in administrators on Christmas Eve after years of "substantial losses". | It called in administrators on Christmas Eve after years of "substantial losses". |
| 'Smashed to pieces' | 'Smashed to pieces' |
| Following Saturday's talks, the RMT demanded an immediate meeting with Business Secretary Vince Cable and called on the government to launch a rescue plan to save the company as a going concern. | Following Saturday's talks, the RMT demanded an immediate meeting with Business Secretary Vince Cable and called on the government to launch a rescue plan to save the company as a going concern. |
| Mick Cash, RMT general secretary, called the situation a "despicable and callous manipulation" of thousands of workers. | Mick Cash, RMT general secretary, called the situation a "despicable and callous manipulation" of thousands of workers. |
| He said there had been a "truly horrific catalogue of mismanagement" at the firm and said City Link staff and the union had been "starved of basic information". | He said there had been a "truly horrific catalogue of mismanagement" at the firm and said City Link staff and the union had been "starved of basic information". |
| The government has previously said it was unable to intervene in the administration process, although Mr Cable said he would meet the union in the New Year. | The government has previously said it was unable to intervene in the administration process, although Mr Cable said he would meet the union in the New Year. |
| However, Mr Cash said: "Clearly that is too late and the business will have been smashed to pieces by then. | However, Mr Cash said: "Clearly that is too late and the business will have been smashed to pieces by then. |
| "If the government can nationalise the bankers then they can nationalise City Link, which is clearly in the public interest," he added. | "If the government can nationalise the bankers then they can nationalise City Link, which is clearly in the public interest," he added. |
| The firm, which was founded in 1969, was acquired by restructuring specialist Better Capital in April 2013. | The firm, which was founded in 1969, was acquired by restructuring specialist Better Capital in April 2013. |
| It invested £40m but E&Y said City Link had incurred substantial losses over several years and the money could not help it turn the firm around. | It invested £40m but E&Y said City Link had incurred substantial losses over several years and the money could not help it turn the firm around. |
| 'Substantial redundancies' | |
| Ernest and Young said it was currently assessing the company and the status of existing orders. | |
| "This process will have a bearing on the number of employees retained and those that unfortunately face redundancy in the next few days," it said in a statement. | |
| "It is anticipated that there will be substantial redundancies over the coming days, at which point the administrators will provide a further update." | |
| It said it anticipated that "a portion of employees" would be retained for up to three months. | |
| Administrators were currently gathering expressions of interest from parties interested in acquiring specific assets, divisions of the business or the entire firm, it added. | |
| But given the previous unsuccessful sale process administrators were "cautious about the prospects of finding a buyer", the statement added. |