Carillion workers "face uncertain future" after collapse


The government decided that it was too politically risky to be seen directly stumping up the guarantees demanded by the banks-especially given that the company secretly took measures to protect £4 million bonuses of executives prior to details of the accounting crisis breaking.

Bradley said the government had actively encouraged small businesses to get involved in public sector contracts "to make sure the little guy got a slice of the pie". The best solution would bring the workers back into the public sector and end outsourcing for good.

The defined benefit (DB) pension schemes of Carillion, one of the United Kingdom government's biggest contractors, will enter the Pension Protection Fund (PPF). "We as the government will continue to pay the wages and salaries of employees working on those public sector contracts". "How can they explain that £2 billion worth of government contracts - taxpayers' money - was awarded despite all the information that has clearly been in the public domain?" he said.

The OCHU - the healthcare arm of the Canadian Union of Public Employees in Ontario - and Unifor together represent almost 50,000 staff in hospitals across the province.

The Scottish government has sought to reassure drivers that a major roads project in Aberdeen will not necessarily be delayed by Carillion's demise.

At a time when ministers and civil servants are helpless, distracted by Brexit, a huge amount of additional work will now have to be undertaken to unravel all of the deals Carillion has concerning the maintenance and operation of hundreds of Government buildings, schools and hospitals all over the country.

Andy Street, the former John Lewis boss who became the first mayor of the West Midlands a year ago, said he was setting up a taskforce to support employees of Carillion and its subcontractors who may be affected by the company's collapse.

But a slew of inquiries are expected to pick through not only Carillion's downfall, but the actions of ministers who handed the firm 450 contracts in recent years.

Meanwhile WolverhamptonNorth East MP Emma Reynold asked about the company's rule change that made it more hard for bonuses to be clawed back, something which the Institute of Directors had slammed earlier in the day.

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David Birne, insolvency partner at chartered accountants H W Fisher & Company comments, said in a statement that it is extremely unusual for a company of Carillion's size to opt for liquidation rather than administration.

"People were in tears, colleagues we worked with for a long time".

The company has been struggling to reorganize for the past six months amid debts of about C$1.54 billion and a pension deficit of 590 million pounds.

He spoke amid growing anger at bumper payouts received by former chief executive Richard Howson. Why were they awarding contracts to Carillion after the exposure of its problems in July?

November 17, 2017 - Carillion's shares tumbled 34% after it issued its third profit warning in five months and said it was heading towards a breach of debt covenants and would need fresh capital.

"There are real suspicions that the government was too close to this company and too wedded to its privatization role", said John McDonnell, a senior Labour party member.

What next for Carillion's big contracts?

Locally it was responsible for services contracts and some station improvements for train operator Northern, some of the electrification upgrades to the lines for Network Rail and was due to take up service contracts at Weeton and Fulwood Barracks for the MOD.