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Clock Ticking For Action on Carillion

Tuesday, January 16, 2018

 

CLOCK IS TICKING FOR CARILLION’S 8,500 PRIVATE SECTOR WORKERS SAYS GMB

No Carillion worker should see their family go hungry, default on a bill or miss a rent or mortgage payment for a crisis they did not cause.

GMB, Britain’s general union, has warned the clock is ticking on action for Carillion’s private sector members.

Following the construction giant’s collapse yesterday, Cabinet Office Minister, David Lidington, told Parliament the Government would continue to pay those among Carillion’s approximately 11,000 staff in the UK who work in public services jobs, such as NHS cleaners and school catering workers.

However thousands of staff working inside Carillion’s private sector companies will have their wages stopped on Wednesday unless their jobs are rescued by other firms, the Government has said. [1]

New GMB analysis suggests there are at least 8,473 Carillion private sector workers. [2]

GMB said the onus is now on Ministers not to throw these workers to the wolves.

Tim Roache, GMB General Secretary said:

“Bosses and ministers caused this crisis, not Carillion workers. The Government is culpable for this mess after ignoring repeated warnings about Carillion’s financial health – now it's up to the Government to pick up the pieces.

“Guaranteeing the pay of those in the public sector is a start. It’s not a long term solution, but it means people can pay the bills.

“But what about Carillion’s 8,500 private sector workers? Is this Government, who were asleep at the wheel as this disaster unfolded, really saying it is happy to throw them to the wolves?

“The clock is ticking for Carillion’s private sector workers – and the Government must now offer them reassurance and financial guarantees. Not a bail out for the bosses, but security for Carillion’s private sector workforce.

“No worker should go hungry, default on a bill or miss a rent or mortgage payment because of a crisis they did not cause."

ENDS

Contact: GMB Press Office on 07958 156846 or at press.office@gmb.org.uk

Notes to Editors:

[1] https://www.theguardian.com/business/2018/jan/15/carillion-fallout-deepens-as-workers-face-pay-being-stopped-in-48-hours

[2] Approximately 8,473 Carillion workers are employed in non-public services roles.

According to the latest figures published by Carillion, 56 per cent of its UK revenue was derived 'from the public sector and regulated customers.'

In 2016 Carillion employed 19,256 people in the UK. Assuming that employment densities remained in line with this public/private revenue ratio, based on the latest available figures, approximately 8,473 people are employed on Carillion private sector/non-public services contracts

Carillion PLC, Sustainability Report 2013, page 42

http://sustainability2013.carillionplc.com/downloads/carillion-sr2013-business.pdf

Carillion PLC, Annual Report and Accounts 2016, page 105

http://annualreport2016.carillionplc.com/downloads/Carillion_Annual_Report_2016.pdf

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