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Carillion: More than 60% of workers at collapsed construction giant now in new jobs

Official Receiver says 11,637 jobs have been saved while 2,303 people have been made redundant

Ben Chapman
Monday 21 May 2018 13:12 BST
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Just over 3,000 employees are currently retained to enable Carillion to deliver the remaining services it is providing
Just over 3,000 employees are currently retained to enable Carillion to deliver the remaining services it is providing (PA)

Work has been found for 64 per cent of Carillion workers, while 12 per cent have been made redundant so far, the Official Receiver which is handling the construction company’s liquidation said.

The Official Receiver said 11,637 jobs have been saved after 19 staff moved on to employment with new suppliers this week.

Two more have been made redundant, taking the total to 2,303 people since Carillion collapsed in January under a huge debt pile.

Those who have lost their jobs will be given “every support” by the Jobcentre Plus rapid response service, the Official Receiver said.

A further 1,115 employees have left the business during the liquidation through finding new work, retirement or for other reasons.

Just over 3,000 employees are currently retained to enable Carillion to deliver the remaining services it is providing for public and private sector customers until decisions are taken to transfer or cease these contracts.

Discussions continue with potential purchasers for Carillion’s remaining contracts and with staff, elected employee representatives and unions as these arrangements are confirmed.

The news came a day after Labour pledged to crack down on the large accountancy firms in order to prevent a situation like Carillion’s liquidation happening again.

“There will be no more Carillion scandals on Labour’s watch,” Shadow Chancellor John McDonnell said on Sunday.

KPMG, Deloitte, EY and PwC will no longer be able to “act like a cartel” that blocks competition and drives down standards, he said.

KPMG signed off Carillion’s books for 19 years, including its final annual accounts ten months before it collapsed.

A damning parliamentary report called for the four largest accountancy firms to be broken up following failings exposed by Carillion's collapse.

The big four accountancy firms came in for severe criticism from MPs on the business and pensions committees, who conducted a joint inquiry into Carillion's demise.

Their final report said the audit profession was undergoing a “crisis of confidence”, and the auditors' tangled web of involvement in Carillion's woes illustrated the need for a more competitive market.

It pointed to audits carried out by Deloitte and KPMG, as well as EY's advisory role and PwC's multi-faceted jobs that involved Carillion's pension schemes and its latest incarnation as special manager of the liquidation.

Carillion’s collapse had been a “story of recklessness, hubris and greed”, MPs said. They slammed the company’s “relentless dash for cash, driven by acquisitions, rising debt, expansion into new markets and exploitation of suppliers”.

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