{"id":47485,"date":"2018-09-26T13:52:56","date_gmt":"2018-09-26T12:52:56","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=47485"},"modified":"2018-09-26T13:55:22","modified_gmt":"2018-09-26T12:55:22","slug":"carillion-redundancy-payments","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/carillion-redundancy-payments\/47485\/","title":{"rendered":"Carillion redundancy payments to cost taxpayer millions"},"content":{"rendered":"

The Unite<\/a> union has discovered that taxpayers are set to pay \u00a365m to former Carillion staff who were made redundant following the company\u2019s collapse in January<\/h2>\n

Unite made a Freedom of Information request to the Insolvency Service which revealed that the Redundancy Payments Office (RPO) has made substantial payments to former Carillion staff.<\/p>\n

The response said: \u201cThe total amount we may payout is approximately \u00a365m of which \u00a350m has been paid so far based on actual claims received.\u201d<\/p>\n

This figure is solely for former Carillion staff and does not include workers who lost their jobs when companies in Carillion\u2019s supply chain also hit the wall due to being owed substantial sums of money.\u00a0As Carillion collapsed<\/a> into compulsory liquidation, rather than enter a managed form of administration, the vast majority of the company\u2019s 19,000 staff had to be made redundant and were then entitled to make a claim for redundancy, from the RPO.<\/p>\n

This included the staff who were transferred to a new employer, however because of Carillion\u2019s compulsory liquidation the Transfer of Undertaking Protection of Employment (TUPE) regulations which protect a worker\u2019s pay, terms and conditions did not apply, nor did rules governing continuation of service. The lack of continuation of service means that the affected workers are considered new starters and have also lost many of their employment rights for a two year period.<\/p>\n

Accountancy firm PwC<\/a>, which was engaged by the Insolvency Service to break up Carillion and transfer its outsourcing contracts to new providers are expected to have earned around \u00a350m from the company\u2019s collapse. As Carillion had just \u00a329m left in the bank when it met its demise, much of PwC\u2019s bill will be picked up by the taxpayer.<\/p>\n

The taxpayer will also have to pick up the bill for the work to complete several of Carillion\u2019s key strategic projects including the Royal Liverpool Hospital<\/a> and the Midlands Metropolitan Hospital, in Sandwell west midlands. The cost of concluding these projects is expected to be in excess of \u00a3100m.<\/p>\n

Unite assistant general secretary Gail Cartmail said: \u201cThese latest figures demonstrate that the taxpayers have had to pick up the tab for the greed and recklessness which led to Carillion\u2019s collapse.<\/p>\n

\u201cWhile the directors and senior executives of Carillion have largely slithered off into lucrative new roles, it is the taxpayers who have been left to pick up the pieces from their mess.<\/p>\n

\u201cThese revelations further underline why the government must order a full public inquiry into Carillion\u2019s collapse to not only understand who was responsible for the greatest corporate failure in UK history but also the total cost to the taxpayer.<\/p>\n

“Additionally the police need to undertake an immediate criminal investigation into those responsible for Carillion\u2019s collapse. If no laws were broken then we need better, stronger laws to prosecute the guilty.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

The Unite union has discovered that taxpayers are set to pay \u00a365m to former Carillion workers who were made redundant following the company\u2019s collapse in January<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[824,676,283],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-47485","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-carillion","8":"tag-construction","9":"tag-finance"},"acf":[],"yoast_head":"\nCarillion redundancy payments to cost taxpayer millions<\/title>\n<meta name=\"description\" content=\"Unite has discovered that taxpayers are set to pay 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