COMPULSORY LIQUIDATION OF CARILLION

January 16, 2018

To All Branches, Regional Offices & Regional Councils

 

Circular No IR.031/18

 

16th January 2018

 

Our Ref: BR1/15/6

 

 

Dear Colleagues,

 

COMPULSORY LIQUIDATION OF CARILLION

 

Obviously our worse fears of the last few weeks has happened and sadly through no fault of their own our members find their future employment, and current monies owed, in jeopardy.

 

I have no doubt the rumours and differing information that is flying everywhere in the media is worrying and confusing.

 

First and foremost we have advised our members to turn up for work in the normal way.

 

The latest position is that I have had initial discussions with Carillion and representatives of the official receivers PricewaterhouseCoopers (PCW) in regards the compulsory liquidation of the company and its impact on workers involved in the delivery of rail contracts.  The representatives indicated that they are looking at a range of options to preserve jobs.  They have confirmed that once they have more detailed information they will meet us within the next few days to address any concerns we have.

 

I have also met with the Chief Executive of Network Rail asking for the work carried out on the Carillion contracts to be bought in-house to ensure stability of employment for our Carillion members. I have also asked Network Rail to guarantee payment to staff for the work they did over the Christmas period, including any bonuses. Our concern is that the January payment that the Government has said will be honoured may not include enhancements earned in December that would normally be paid in the February paybill. I have also asked Network Rail to ensure all sub-contractors that had been working under Carillion contracts be paid as well.

 

I have written to the Mayor of London asking for all contracts that come under Transport for London be bought in-house and any wages owed be honoured. Our Lead Officers for the Train Operating companies are doing likewise.

 

We have written to, and sought urgent meetings with, the government asking that they protect workers’ jobs and wages and classify all rail work as public sector and take all Carillion rail contracts in–house. The RMT Parliamentary Group has also sought an urgent meeting with the Government.

 

The union is also making the appropriate urgent representations to the relevant bodies regarding pensions and I will communicate with you very shortly on this matter.

 

Things are moving at a pace at the moment but regrettably there is still a lot of confusion as to what the outcome of this terrible collapse will bring to members but I can assure you we are doing all we can at this awful time.

 

I will keep you advised of developments as they happen.

 

Yours sincerely,

 

Mick Cash

General Secretary

 

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