Adminstrators KPMG revealed the second wave of 400 job cuts as it confirmed Mears had taken on eight contracts on Monday.
Now it is also clear that Norwich Council is unlikely to find a buyer for Connaught’s housing maintenance work in the area, said by rival contractors to have been secured at a very low price.
The council last night announced that the 300-strong workforce would be laid off. Norwich Council will now be forced to retender the whole housing maintenance job, which will take several months to complete.
The administrators said they were hopeful that the Mears transfer would open re-employment opportunities for some of the 600 staff made redundant from those contracts.
Mears has opened a hotline for redundant staff to explore vacancies on tel: 0845 602 2768.
The firm is also progressing with the final negotitions on four other remaning contracts and has agreed the transfer of the London Borough of Lambeth housing repair work to contractor Morrisons.
Brian Green said: “We have now transferred the vast majority of Connaught Partnerships’ contracts to new providers, safeguarding the majority of jobs and ensuring continuity of service for tenants.
“To do this within days of the company going into administration is remarkable, and is a testament to the commitment of everyone involved in securing the future of these contracts in a very difficult situation.
“Unfortunately around a quarter of staff were made redundant as part of the administration but we are hopeful that some of these staff will be re-employed by Mears.”
Cost of failure to Connaught staff
- Total staff on appointment of administrators, approximately 4,200
- Redundancies made as part of the administration, approximately 1,400
- Staff transferred to Lovell Partnerships, around 2,800
- Staff Transferred to Mears, around 1,000
- 24 staff transferred to Morrisons