New figures show Carillion layoffs cost taxpayer £ 65 million

Taxpayers will have to pay £ 65 million to former Carillion workers dismissed since the collapse of the construction and subcontracting business in January, when the government claimed the liquidation would not have been used by the company. public money.

To date, the Board has paid out GBP 50 million to former Carillion employees and expects this amount to increase by an additional GBP 15 million based on requests received.

The number of requests received for an access to information request does not include workers who have lost their jobs in companies in Carillion’s supply chain.

Thousands of small businesses have been affected by the dissolution of Carillion, which owes hundreds of millions of pounds sterling to suppliers and subcontractors.

Unite Union, which received the new numbers, said taxpayers should also pay for the work needed to complete some of Carillion’s projects, including the Royal Liverpool and Midlands Metropolitan hospitals. The cost of completing these projects is expected to exceed 100 million pounds, Unite said.

In addition, public funds may be required to cover much of the 50 million charges against Carrollion for liquidating PwC.

Unite said the recent revelations show that the government’s first signs that the Carillion collapse would have no impact on the taxpayer are “extremely vast”.

Gail Cartmail, Deputy Secretary General of Unite, called the Carillion collapse “the biggest bankruptcy in the history of the United Kingdom” and called for a full public inquiry into the perpetrators and the total cost to the taxpayer.

“These latest figures show that taxpayers have had to take responsibility for the greed and cruelty that led to the collapse of Carillion,” Cartmail said.

“While the directors and senior executives of Carillion have largely sunk into lucrative new roles, it is the taxpayers who have the task of sorting through their business.”

Police should immediately open a criminal investigation of those responsible, she added. “If no law is broken, we need better and stronger laws to prosecute the guilty.”

Most of Carillion’s 19,000 employees had to be fired and were allowed to file a request for RPO layoffs.

This included employees transferred to a new employer but, because of the mandatory Carillion wind-up, the TUPE regulations protecting the worker’s pay, the conditions were not applicable nor the rules relating to the continuation of the service.

Workers are therefore considered newcomers and have lost a lot of their labor rights for two years.

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