Carillion: Redundancy toll passes 1,800 but almost 10,000 jobs saved so far
The total number of jobs lost in the Carillion collapse has now topped 1,800, with another batch of workers set to be made redundant this week.
But successful deals to find new operators for Carillion's public and private sector contracts have so far secured the jobs of nearly 10,000 employees from the Wolverhampton-based construction and services giant.
Following the Official Receiver's decision to put the company into compulsory liquidation in January, a team from accountants PwC has been acting as 'special managers' handling the winding up of the business.
They have been working with the back-office team at Carillion's Wolverhampton city centre headquarters, in Salop Street, including human resources and admin staff, on the details of the liquidation. So far more than half of the 460 staff at Salop Street have also been made redundant, although some staff are expected to keep working there until the final days of the winding up process.
This week another 97 staff are due to lose their jobs at sites across the UK, with 873 transferring to new companies.
The Official Receiver's spokesperson said yesterday: "More than half (54 per cent) the pre-liquidation workforce – close to 10,000 employees – have now been found secure ongoing employment so far through the liquidation
"A further 873 jobs have been saved with employees transferring to new suppliers who have picked up contracts that Carillion had been delivering
"Regrettably we have been unable to find ongoing employment for a further 97 employees who have been given notice of redundancy. Jobcentre Plus’ RapidResponse Service will provide them with every support to find new work
"Discussions with potential purchasers continue. I am continuing to engage with staff, elected employee representatives and unions to keep them informed as these arrangements are confirmed."
It brings the total of jobs lost to 1,802 and those saved to 9,946. A further 5,400 are still working on Carillion contracts across the public and private sector waiting to discover their ultimate fate.
The company collapsed with debts of more than £1.5 billion and just £29 million in cash in the bank. The directors have blamed a growing crisis over managing the scale of its debts that was made worse by a string of problems on major construction projects.
These included the £350m Midland Metropolitan Hospital in Smethwick. Work stopped after the liquidation with the hospital just two thirds complete. Talks are understood to be under way with a potential new contractor to take over the building work.
Work had also stopped at the parts of the £700m Paradise redevelopment in Birmingham city centre that had been handled by Carillion. But this restarted last month, with BAM Construction taking over completion of One Chamberlain Square.
