COMPULSORY LIQUIDATION OF CARILLION

Our Ref: BR1/15/6

15 February 2018

To: ALL MEMBERS EMPLOYED BY CARILLION

Dear colleague

COMPULSORY LIQUIDATION OF CARILLION

I write to provide an update on the latest developments with regards to the liquidation of Carillion.

Your union was represented at a recent meeting convened by the TUC at which liquidators PWC provided an overview of the latest situation to the affected trade unions.

Consultation – with the official HR1 redundancy notices being issued on a national basis, this made it difficult to identify which specific contracts were at risk and which employees would be affected. Consultation is generally being carried out through employee forums rather than through trade union recognition agreements with elected represented, but it was noted that RMT has had formal talks with Network Rail, Arriva Rail North and Arriva London.

TUPE – PwC stated that TUPE does not apply in matters of liquidation, although it did say it was encouraging all parties involved in staff transfers to honour existing terms and conditions. However, it has no legal control over this process so it only remains an aspiration.

Legal entity of employer – the official receiver undertook to carry out further work in this regard as it remained a problem as to who the actual employer was on many of the contracts.

Pensions – A meeting is to be set up involving trade union pension officers, convened by the TUC, to discuss all aspects of the pension situation.

Trade union deductions via paybill – steps are being taken by RMT to identify any current Carillion contract staff who currently pay their subscriptions via paybill and ensure they do not lapse and that they continue to enjoy RMT membership.

The above matters were also subject of discussions at the initial redundancy consultation meeting for the rail business part of Carillion. Carillion stated that, while it had been an extremely complex and fast-moving process up to now, employees should continue to attend work and they will continue to be paid for any work carried out.

It was also set out that the bid process was about to close and the arrangements for Network Rail funding of the contracts would be known shortly.

The company also stated that it expected to reconvene the consultation process in the next week or so when further clarity will be provided on the sale process and how this will affect employees. The provisional date for the next meeting is 20th February 2018, after which I hope to be in a better position to provide members with further information. It is obviously a worrying time for you and your colleagues but I can assure them their union is doing all it can to defend our members’ interests.

I will write to you again in the very near future with further updates.

Yours sincerely   Mick Cash General Secretary