Efforts by the government to reassure thousands of staff employed by Carillion to work for private sector clients were called “flimsy”. Trade unions warned the promise would not provide sufficient reassurance and voiced fears that Carillion’s financial failure would spread further among suppliers, some of which have begun laying off staff.
The GMB trade union said a statement from the Insolvency Service “raises more questions than it answers”.
“Ensuring most workers get paid beyond today doesn’t go nearly far enough to give the reassurance our members need right now,” said general secretary Tim Roache. “We need proper guarantees that they will not be left in the lurch and unable to pay the bills within days due to a crisis they did not cause. Without assurances as to how long wages are secure for and who will be running these contracts given the company’s spectacular failure, this is not going to help Carillion workers sleep easier tonight.”
Unite assistant general secretary Gail Cartmail said: “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.”