23 March 2015
MP'S Back RMT Demands on Scandal of City Link Christmas Collapse
The conclusion of a joint parliamentary committee report into the collapse of the City Link courier company on Christmas day, published today, has said there is an “overwhelming case” for improvements to current practices and legislation when a company goes into administration to help protect the rights of workers, allow for better communication and safeguard the taxpayers interests.
The committee also;
- * strongly criticized City Link and their owners Better Capital with MPs saying they were “dismayed” that small business and self-employed drivers working for City Link were encouraged to take on additional costs despite the strong possibility that they would not receive payment for their work.
- * Said contractors were “deliberately deceived” as to the true state of the business with City Link and Better Capital being “morally, if not legally responsible, for the difficulties many of the individuals and small businesses now find themselves in.”
- * Said existing arrangements incentivises companies to break the law on consultations with employees and this has had a high human cost in the City link decision making process.
- * Found that there was a “differences of opinion” as to whether or not City Link could be made viable but it was it was a “matter of regret” that better Capital felt its interests could be only be protected at the expense of the future of City Link and continued employment for its workers.
- * Welcomed the fact that the UK government ensures employees can claim the money they are owed if their employer goes into administration, but said it was of great concern that under current legislation taxpayers are left to pick up the bill allowing private investors to recover more of their investment.
- * Disagreed with the current system where those who have given secure credit are cushioned from the full impact of the insolvency because of the losses borne by the workforce. The Committee called on the government reform the Insolvency Act to give preference to all of a company’s workers regardless of whether they are directly employed
RMT General Secretary Mick Cash said:
“The City Link scandal shocked and outraged the nation and this independent cross-party report endorses our view that Better Capital and City Link deliberately deceived their employees and Better Capital put their interests before those of saving City Link or the workforce.
“Piling scandal on top of scandal the report says the law on consulting with employees was deliberately broken with a high human cost. This allowed the bandit capitalists to cut and run while workers lives were ruined and the taxpayers were left to pick up the pieces.
“RMT welcomes the MPs recommendation that there is an overwhelming case for reform to protect workers in the future and calls on the government to act swiftly on the recommendations.
“The next stage in the RMT'S campaign for justice for City Link workers is the administrators report to the government into conduct of City Links directors. We are demanding that results in a full and forensic examination of the facts by ministers which leaves no stone left unturned. It is the very least City Link workers deserve.”