What Carillion Collapse Means for Employees

29 Jan 18:00 by Miriam Heale

The collapse of Carillion sent shockwaves through its 19,500 UK and 43,000 employees worldwide, earlier this month and many people are facing job losses and uncertainty around their pension funds.

Carillion delivered around 450 contracts with government, representing 38% of Carillion’s 2016 reported revenue, and employed professionals across the spectrum of infrastructure design, planning and delivery.

The Government have said that they will continue to pay those among Carillion’s 19,500 UK staff who work in public sector jobs, however employees who provide services to private-sector firms are relying on private companies to come forward and take on the projects and staff.

Kier, Balfour Beatty and Gaillford Try are amongst the private sector companies who have pledged to take on Carillion workers.

Kier have taken on around 200 employees as it assumes responsibility for the construction work on UK motorways and the HS2 rail line.

Balfour Beatty said it would continue to work with its customers and will meet its contractual commitments. It said this would cost it £35-£45m across three major road projects.

Galliford Try will replace Carillion on a £96m road scheme in Lincolnshire and the council’s leader Martin Hill said that while Galliford Try would be brought in to manage the scheme on an interim basis, it would “try to keep the local Carillion team employed on the project.”

Smaller companies such as Caddick Construction have also stepped-up.  Caddick has been hired to complete the £154m Angel Gardens scheme in Manchester and have directly hired 20 former Carillion employees

The Construction Industry Training Board have also said it would step in to secure the future of Carillion’s 1,400 apprentices, offering grant and apprenticeship transfer incentives to other employers. It is hoping to place the first trainees with new employers by the end of this month.

There is hope for many ex-Carillion employees and we wish them well.  Many private companies are taking on the projects to completion and offering employment for now, but we also recognise that this is a very difficult time for many.

Information for employees, sub-contractors, creditors and suppliers is available on Government Website

Browse all infrastructure & rail jobs on the ALLEN & YORK website