UPDATED: More than 800 Carillion redundancies announced

 

A further 452 job losses have been announced as a result of the collapse of British construction giant Carillion, on top of the 377 announced last week.

The latest news from the Official Receiver confirmed the extra job losses, while stating that 100 more jobs linked to public sector contracts had been safeguarded.

'Most staff will be transferring on existing or similar terms, something I will continue to facilitate wherever possible as we work to find new providers for Carillion’s remaining contracts,' a spokesperson said.

Last week the Official Receiver announced that 919 Carillion employees had their jobs safeguarded, but 377 had lost their position and will be entitled to claim for statutory redundancy payments.

”Local

Employees whose jobs had been safeguarded work on infrastructure, central and local government and construction contracts, and are transferring to new employers who have taken on this work.

Carillion employed close to 20,000 staff in the UK. It was liquidated last month with just £29m of cash and more than £1.5bn of debt.

Since the announcement of Carillion's collapse different companies have taken over its work, some through 'joint and several' contract arrangements.

Balfour Beatty and Galliford Try have taken on extra responsibilities for projects at cost, while Kier has taken on HS2 work and smart motorway jobs. Skanska has also picked up extra highways work in Hampshire.

Ministers have said the state-owned British Business Bank will guarantee £100m of lending to Carillion suppliers to help make it easier for them to borrow.

Keith Morgan, British Business Bank CEO, said: 'The Enterprise Finance Guarantee (EFG) is an important option for smaller businesses who need access to finance, but may not be able to meet a provider’s normal security requirements. To help in these exceptional circumstances, we have designed additional flexibility into EFG that could be particularly suitable for firms in the Carillion supply chain. We would encourage lenders to work with their customers to use these new flexibilities to meet their needs.'

High street banks have also pitched in. Lloyds has announced a £50m fund, while RBS is offering £75m worth of assistance and HSBC £100m.

More information for employees, sub-contractors, creditors and suppliers is available here.

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