Task force to support Carillion-hit firms

Share

"For once they should be a priority over banks and investors when it comes to liquidating the assets of the business and paying creditors".

The British government needs to allow more time for firms to take on workers whose jobs are threatened by the collapse of outsourcer Carillion, the head of one of Britain's biggest trade unions said on Wednesday.

"Over the coming days, we will review supplier contracts and we'll contact you concerning these soon", it said.

The company had about $1.7 billion in debt and an $800 million pension deficit.

Clark said: "It got key people round the table to drive forward steps that we believe can give confidence to workers and the supply chain; support from banks, the ability to link workers with employment and support for apprentices.

The task force comprises representatives from business, construction trade associations, the trade unions, lenders and Government".

TUC general secretary Frances O'Grady welcomed the formation of the task force.

She said the TUC would be pressing the government to transfer private sector contracts to alternative providers in order to protect jobs, pay and pensions.

'There is an exercise going on to make sure that all the contractors are identified, that they are given assistance from the banks, which is very important, but also - because most of these contracts are profitable - that they can be reassigned and can continue, ' said Mr Clark.

Nationwide said in a statement that it will take in house around 250 staff who were previously employees at Carillion, as well as guaranteeing the jobs of a further 1,500 workers employed by Carillion subcontractors.

The following day, Carillion won part of a 158 million pound Ministry of Defence contract to provide catering, hotel and mess services at 233 military facilities.

Lloyds Banking Group (LBG) has unveiled a £50 million package to support its small business customers in Carillion's supply chain hit by its liquidation.

It said that it would arrange fee-free overdrafts and capital repayment holidays on loans for the most severely impacted customers.

Britain's opposition Labour and Liberal Democrat parties called for an investigation into the government's dealings with Carillion before the company collapsed.

The UK-wide charity, Perennial, has pledged to help those in the landscape industry affected by the collapse of construction firm, Carillion.

Share