THE UK’s largest union has called on the Government to intervene to prevent large scale job losses following Carillion’s demise.
Unite said government support should include “direct financial support” for subcontractors and the supply chain faced with huge financial losses as a result of the construction giant’s liquidation
Gail Cartmail, Unite assistant general secretary said, “The Government needs to stop passing the buck, it can’t sit idly by and allow companies to go to the wall. The Government has a moral duty to provide direct financial assistance as well as other support in order to ensure that subcontractors and suppliers don’t needlessly go to the wall, with thousands of workers potentially losing their jobs.
“Pressure also needs to be applied to the banks, to give breathing space to affected subcontractors so that they can continue to operate. The banks were bailed out when they were in trouble and similar support needs to be given to companies affected by Carillion’s collapse.”
Affected subcontractors who were owed money by Carillion could receive just 1p in the pound.
To help minimise the damage, Unite has also called on construction clients to ensure projects that have been halted are restarted as quickly as possible and that subcontractors previously employed on those sites are guaranteed work when they are restarted.
Gail Cartmail added, “Construction clients were happy to accept the lowest bids tabled by Carillion and now have a moral imperative to ensure that the damage done to sub-contractors as a result of these actions, is minimised.
“If decisive action is not taken by the Government and clients, then thousands of workers employed by sub-contractors and in its supply chain face losing their jobs, with vital skills and expertise being lost from the industry.”