Carillion workers sue for back pay

Aaron Morby 6 years ago
Share

Union Unite is backing a claim by 80 Carillion workers that they were dismissed without proper consultation in the wake of the group’s collapse.

Legal action is the first taken by a union for affected workers
Legal action is the first taken by a union for affected workers

The legal action is the first taken by a union for affected workers, following the group’s collapse and will be watched by other former Carillion employees.

A group of former Carillion staff are also understood to be looking at taking their own group action over lack of consultation.

Unite’s members were employed by Carillion’s group company Planned Maintenance Engineering on a contract at GCHQ, the government’s listening headquarters in Cheltenham, Gloucestershire.

If successful the workers would each be entitled to up to 90 days’ pay, but because Carillion is in liquidation this would be paid by the Insolvency Service and would be capped at 8 weeks at a maximum weekly amount of £489.

Their company went into compulsory liquidation on 15 January and on 23 January the 80 strong workforce was informed by the

A week after compulsory liquidation on 15 January PriceWaterhouseCoopers told the workers that they faced redundancy.

It said as there was no recognised union they would be organising the election of employee reps to consult on the proposed redundancies.

The workers were dismissed on 6 February, without consultation and told to claim their redundancy pay from the government’s redundancy payments office.

They were were then taken on by G4S. As their section of Carillion was in compulsory liquidation, the normal Transfer of Undertakings Protection of Employment regulations did not apply so the workers’ employment and terms and conditions were not protected.

Unite assistant general secretary for legal services Howard Beckett said: “Unite is fulfilling its promise of using all avenues including its legal arm to defend our members who are the innocent victims of Carillion’s collapse.

“The complexity of this case, which combines employment law rights and draconian insolvency law requirements,  demonstrates why workers need to be part of a union, it would have been simply impossible for individual workers to pursue such a case.

“If our members are successful then once again it is the taxpayers who are going to have to pick up the bill for Carillion’s failings. This again underlines that the outsourcing model is broken beyond repair and needs to be scrapped.”

The claim is against the Carillion employing company, but the tribunal judge has also added in the Secretary of State of Business, Energy and Industrial Strategy as an additional respondent to the claim as it is their agency, the Insolvency Service, which will have to pay the members if the claim is successful.

It is not known whether Carillion/PWC will seek to defend the claim, which could further reduce the amount of money Carillion’s creditors will receive.

Latest news

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
4 hours ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
5 hours ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
6 hours ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
5 hours ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
5 hours ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
3 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
3 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
3 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
3 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
3 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
3 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
3 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
3 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
4 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
4 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
4 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
5 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
4 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
4 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
5 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
5 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
5 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
5 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
5 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
6 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
6 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
6 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
6 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
1 week ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
6 days ago

Contractor services