Menu
15/01/2018
Thousands Of Jobs At Risk As Carillion Enters Administration
NI-based workers for construction giant Carillion are holding emergency meetings with unions after it was announced this morning that the firm has entered compulsory liquidation.
Thousands of jobs are now at risk as discussions between the company, its lenders and the government failed to reach an agreement.
An application was made to the High Court for a compulsory liquidation of Carillion earlier today, 15 January. An order has been granted to appoint the Official Receiver as the liquidator of Carillion.
The company has debts of £1.5 billion with a pension deficit of £600 million.
Carillion's Chairman, Philip Green, said: "This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.
"Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.
"In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the official receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers."
Between 200 and 300 people in Northern Ireland are employed by Carillion, which has a facility in Belfast's Titanic Quarter. The company has three major contracts with the Northern Ireland Housing Executive for home maintenance and gas installation. They also carry out work on behalf of Power NI.
Some 48,000 people worldwide work for the company, with around 20,000 of those based across the UK.
Jim Kennedy, Unite national officer for local government, said: "These have been a grim few days for this workforce. They will head into work today not knowing if their wages, pensions and even their jobs are safe.
"The administrator must provide reassurances on these to the workforce as a matter of urgency, and also that vital public services on which many depend will continue to be provided.
"One thing is evidently clear from this: there must be no business as usual for big business. There has to be an urgent inquiry into how a company that loaded itself with debt, which undercut competitors with unsustainable bids, which hoovered up vats of public money, and that had repeatedly alerted the government to its own financial shortcomings got its hands on so much of the public sector and taxpayers' cash."
(LM/MH)
Thousands of jobs are now at risk as discussions between the company, its lenders and the government failed to reach an agreement.
An application was made to the High Court for a compulsory liquidation of Carillion earlier today, 15 January. An order has been granted to appoint the Official Receiver as the liquidator of Carillion.
The company has debts of £1.5 billion with a pension deficit of £600 million.
Carillion's Chairman, Philip Green, said: "This is a very sad day for Carillion, for our colleagues, suppliers and customers that we have been proud to serve over many years.
"Over recent months huge efforts have been made to restructure Carillion to deliver its sustainable future and the board is very grateful for the huge efforts made by Keith Cochrane, our executive team and many others who have worked tirelessly over this period.
"In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the necessary funding required by the official receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers."
Between 200 and 300 people in Northern Ireland are employed by Carillion, which has a facility in Belfast's Titanic Quarter. The company has three major contracts with the Northern Ireland Housing Executive for home maintenance and gas installation. They also carry out work on behalf of Power NI.
Some 48,000 people worldwide work for the company, with around 20,000 of those based across the UK.
Jim Kennedy, Unite national officer for local government, said: "These have been a grim few days for this workforce. They will head into work today not knowing if their wages, pensions and even their jobs are safe.
"The administrator must provide reassurances on these to the workforce as a matter of urgency, and also that vital public services on which many depend will continue to be provided.
"One thing is evidently clear from this: there must be no business as usual for big business. There has to be an urgent inquiry into how a company that loaded itself with debt, which undercut competitors with unsustainable bids, which hoovered up vats of public money, and that had repeatedly alerted the government to its own financial shortcomings got its hands on so much of the public sector and taxpayers' cash."
(LM/MH)
Related Northern Ireland News Stories
Click here for the latest headlines.
21 November 2024
Public Consultation On Decriminalising Rough Sleeping And Begging
The public is invited to share their opinions on proposals to decriminalise rough sleeping and begging in Northern Ireland. Justice Minister Naomi Long has launched a consultation on the repeal of Section 4 of the Vagrancy Act 1824 and Section 3 of the Vagrancy (Ireland) Act 1847.
Public Consultation On Decriminalising Rough Sleeping And Begging
The public is invited to share their opinions on proposals to decriminalise rough sleeping and begging in Northern Ireland. Justice Minister Naomi Long has launched a consultation on the repeal of Section 4 of the Vagrancy Act 1824 and Section 3 of the Vagrancy (Ireland) Act 1847.
19 November 2024
BCC Launches Public Consultation On £100m Belfast Stories Project
Belfast City Council has today launched a public consultation on the ambitious £100 million Belfast Stories project. The initiative aims to transform the former Bank of Ireland building and surrounding site into a major public space, visitor attraction, and creative hub.
BCC Launches Public Consultation On £100m Belfast Stories Project
Belfast City Council has today launched a public consultation on the ambitious £100 million Belfast Stories project. The initiative aims to transform the former Bank of Ireland building and surrounding site into a major public space, visitor attraction, and creative hub.
16 January 2018
Carillion Collapse Should Be 'Epitaph' For Public Outsourcing & Privatisation
The events surrounding the demise of construction giant Carillion should be "thoroughly investigated", as the international construction company faces inevitable liquidation, Sinn Féin's Chris Hazzard has said.
Carillion Collapse Should Be 'Epitaph' For Public Outsourcing & Privatisation
The events surrounding the demise of construction giant Carillion should be "thoroughly investigated", as the international construction company faces inevitable liquidation, Sinn Féin's Chris Hazzard has said.
15 November 2024
New £4.3m Grant To Boost Business Innovation
Economy Minister Conor Murphy has launched the Business Innovation Grant (BIG), a new £4.3 million initiative designed to stimulate innovation and enhance productivity among Northern Irish businesses. The scheme, developed by Invest Northern Ireland and delivered in partnership with Innovate NI, is open to micro-businesses, sole traders, and SMEs.
New £4.3m Grant To Boost Business Innovation
Economy Minister Conor Murphy has launched the Business Innovation Grant (BIG), a new £4.3 million initiative designed to stimulate innovation and enhance productivity among Northern Irish businesses. The scheme, developed by Invest Northern Ireland and delivered in partnership with Innovate NI, is open to micro-businesses, sole traders, and SMEs.
20 November 2020
'Urgent Clarification' Needed For Cross-Border Workers - SF
The Government has been asked to "urgently clarify" issues with the upcoming permit scheme for cross-border workers which will go live at the end of the Brexit transition period.
'Urgent Clarification' Needed For Cross-Border Workers - SF
The Government has been asked to "urgently clarify" issues with the upcoming permit scheme for cross-border workers which will go live at the end of the Brexit transition period.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
