Carillion collapse: Wolverhampton jobs among 400 to be axed
Nearly 400 Carillion workers are to be made redundant, including some at the company's headquarters in Wolverhampton, the official receiver said today.
But more than 900 people at the construction and services giant have had their jobs protected, moving them to new companies taking over the contracts they were working on.
The job losses are among back-office staff working on delivering a range of contracts around the country. Around 253 were working on public sector contracts and 124 for the private sector.
A spokesman for the Official Receiver said: "As part of the ongoing liquidation of the Carillion group I am pleased we have been able to safeguard the jobs of 919 employees today.
"Most staff are transferring on existing or similar terms and I will continue to facilitate this wherever possible as we work to find new providers for Carillion's other contracts.
"Despite best efforts it has not been possible to secure the jobs of 377 staff, who will be made redundant. "
The spokesman added: "I am expecting many employees working on other Carillion contracts to transfer in the coming weeks and we are continuing to keep the workforce updated as these arrangements are finalised.
“Those affected will be entitled to make a claim for statutory redundancy payments. The Jobcentre Plus’ Rapid Response Service stands ready to support any of these employees by providing advice and information so people can move into a new job as quickly as possible.
“I recognise that this will be a worrying time for all those affected, their families and local communities. I would like to thank all staff for their professionalism throughout the liquidation."
Around 400 staff work at the Carillion headquarters on the Ring Road St Marks in Wolverhampton city centre. Most of them are likely to remain working during the liquidation process as they provide detailed information on contracts to the Official Receiver and the team of special managers from accountants PwC who are working on the breakup of the company.
Carillion employed more than 19,000 of its 43,000 strong global workforce in the UK.
The 919 whose jobs have been safeguarded work on infrastructure projects such as road and rail and on central and local government, and construction contracts and are transferring to new employers who have taken on this work
The Official Receivers says continued support among Carillion’s public and private sector customers is enabling as many employees as possible to be retained in the interim until all contracts have been worked through.
The company collapsed three weeks ago after months of crisis following a profits warning in July last year, when the company revealed an £850 million black hole on a string of construction contracts.
Its failure has left work at a standstill on the projects such as the Midland Metropolitan Hospital at Smethwick and part of the £700m Paradise Birmingham redevelopment. Around 30,000 sub contractors and suppliers could be owed up to £1 billion that may never be paid, and the company was weighed down by debts of nearly £1 billion as well as a pension deficit of almost £600m.
