August 7, 2018

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Carillion

Final Carillion contracts handed over to new suppliers

The last contracts provided by failed construction giant Carillion have been transferred to new suppliers, according to the Official Receiver.

In a statement issued yesterday, the Official Receiver, David Chapman announced the “trading phase” of the liquidation process, which started in January when Carillion collapsed with debts of more than £1.5 billion is now complete.

According to the Official Receiver, 13,945 jobs have been saved and transferred to new suppliers, while the total number of redundancies now stands at 2,787.

In addition, 1,272 Carillion workers have left the business during the liquidation process for new jobs elsewhere, retirement or for other reasons.

And around 240 core staff remain to help wind up Carillion’s remaining work and activities.

At its height, the construction giant directly employed more than 20,000 and had a strong record on health and safety.

In 2016, Carillion Services UK won an International Safety Award from the British Safety Council in recognition of its commitment to keeping its workers and workplaces healthy and safe. It was one of just 30 organisations to receive a distinction in the awards, scoring 59 out of a maximum of 60 points.

“Carillion is the largest ever trading liquidation in the UK,” said Mr Chapman.

“During this period 83% of the original workforce have either transferred with the contracts or resigned with another job to go to. Staff have been very professional throughout the liquidation and I want to thank them for their support as we worked to find new suppliers,” he added.

“The focus of the liquidation will now shift to the provision of limited transitional services for some supplier and finalising Carillion’s trading accounts to ensure that payment is made to suppliers who have provided goods and services to the various liquidations. Suppliers are asked to ensure they supply their final accounts as soon as possible.”

In July, a group of MPs claimed the collapse of Carillion exposed fundamental flaws in the Government’s approach to outsourcing.

A report published by the Public Administration and Constitutional Affairs Committee warned Whitehall’s overriding priority for outsourcing is “spending as little money as possible”, while forcing contractors to take unacceptable levels of financial risk.

Responding to the Official Receiver’s latest statement, Labour’s Shadow Cabinet Office Minister, Jon Trickett commented: “In the wake of this announcement, we should remember the collapse of Carillion has had devastating consequences for workers who have lost their jobs and in some cases are still owed vast amounts in unpaid wages. This is a catastrophic failure and inadequacy of our regulatory system.

“The whole episode surrounding the collapse of Carillion once again underlines that the outsourcing model is broken beyond repair.”

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