To All Branches, Regional Offices & Regional Councils
Circular No IR.048/18
26th January 2018
Our Ref: BR1/15/6
Compulsory Liquidation of Carillion – Agreement Reached on Christmas Payments to Carillion's smaller rail suppliers
As you are aware Carillion has been placed in Compulsory Liquidation and our worse fears of the last couple of weeks has happened and sadly through no fault of their own members find their future employment in jeopardy.
We are working with employers where Carillion are the contractors to see if they can mitigate any job losses in any way and trying to ensure that all wages and enhancements already earned are paid.
I am pleased to say that there has been some encouraging news in that some 300 of Carillion Construction Ltd's smaller rail suppliers are to be paid the arrears they are owed following a further agreement between the Official Receiver's special manager, PwC, and Network Rail.
The agreement covers Carillion’s small rail suppliers arrears from Christmas time through to the 15th of January when the company went into liquidation and touches around two-thirds of Carillion’s rail supply chain. We believe that there are RMT members who may be involved but it is difficult to state definitively because the very nature of contracted-out work. Companies such as McGinley Rail, TXM Plant, Quattro Plant and Ready Power are likely to be involved and I will write to individual members in these companies advising them of the situation. Our hope is that any Christmas Bonuses etc., will be passed on to individual members.
This is in addition to last week’s announcement that all certified work after 15 January to all suppliers on rail projects will be paid until further notice and that Carillion rail employees will be paid until at least mid-April.
Network rail has stated that they recognise how challenging this period has been for their small suppliers. They hope that this will be some positive news to the hundreds of smaller companies up and down the country who have been worried about the impact on their business. These small organisations are a critical part of their supply chain both now and in the future.
Network Rail has also advised us that PwC, together with their in-house task force and the Carillion teams, are carefully managing this difficult period to keep all their rail projects going, and find ways to support staff and suppliers alike.
I will keep you advised of any developments and in the meantime I would be obliged if you would distribute this circular as widely as possible.