UNION

Interserve deal leaves unanswered questions

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06 Feb 2019
Press Office

Press Office

GMB, the union for Interserve workers, has reacted to news the company reached a deal with creditors to prevent its collapse.

The rescue plan involves cutting its debts from over £600m to £275m by issuing new shares.

Kevin Brandstatter, GMB National Officer, said:

“The deal Interserve reached with creditors leaves a lot of unanswered questions for GMB members working in the NHS, the Ministry of Defence, the probation services, schools and local authorities.

Carillion collapse: the dangers of outsourcing

“It appears that under the plans to convert debt to equity, Interserve will continue to make losses for at least another seven years.

“GMB is concerned in order to pursue this strategy Interserve will seek to attack pay, pensions and other terms and conditions of employment.

“We fear rather than resolving Interserve’s issues, this deal will simply delay the company’s inevitable demise. 

“The outsourcing sector is descending into carnage as companies underbid each other for contracts in a race to the bottom which will see a serious decline in public services. 

Kevin Brandstatter, GMB National Officer

“Irrespective of the manoeuvring of the shareholders and creditors,  the jobs of some 45,000 Interserve employees, and thousands of others in the supply chain remain under threat.

“The Government has still not taken on board any lessons from the collapse of Carillion.

“The outsourcing sector is descending into carnage as companies underbid each other for contracts in a race to the bottom which will see a serious decline in public services. 

“The rot must stop; GMB calls on the Government, NHS Trusts, Local Authorities and Schools to end the menace of outsourcing, bring contracts back in house, and use the savings to improve public services for all, rather than provide profits and bonuses for the tiny minority of executives and shareholders."

 
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