Our Ref BR1/15/6
15th March 2019
TO ALL INTERSERVE MEMBERS
FUTURE OF INTERSERVE
Further to previous correspondence I write to advise you that the emergency shareholder meeting took place today and regrettably the financial rescue plans have been rejected. As a result Interserve will go into administration today. Although administration allows ongoing trading of the company in the short term, the ownership has changed from the shareholders to the lenders whom it owes massive debts. As a result we are concerned that this development could see Interserve broken up and sold off in order to pay off its debts.
We continue to seek assurances from Interserve and the client companies over what would happen if Interserve stops trading and the work needs to transfer to a new supplier. For example Network Rail has indicated they have prepared for this event and have plans in place for alternative suppliers to take over should matters deteriorate beyond recovery.
Our priority is to make sure you are protected whatever happens in the next few weeks. Therefore we have asked for guarantees that wages would continue to be paid, terms and conditions would be protected and your continuity of employment is maintained. In line with union policy we have also demanded the work is taken in house where it belongs.
This news will no doubt be alarming but please be assured we are doing all we can to protect your jobs and conditions. The situation is at a very early stage and a soon as there is any further information I will write to you again.