How has everyone’s week been? Apparently it was ‘Blue Monday’ earlier this week, which is known as the ‘most depressing day of the year’ due to money, weather, time since the festive period, and failing new year’s resolutions. To be honest, does Blue Monday actually exist? Or was it just a publicity stunt? Moving onto the blog topic for this week, we will be looking at the news with regards to Carillion.
Carillion is the UK’s second largest construction firm in the UK, employing 43,000 members of staff globally with 20,000 of them being in the UK. They specialise in construction, facilities management, and ongoing maintenance who employ construction workers, hospital cleaners, prison maintenance workers, port staff, and workers in the energy and utilities sector. Earlier this week Carillion announced that the company was going into liquidation due to being under the weight of £1.5bn of debt, including a £587m pension shortfall. The problems seemed to arise from risky contracts in the Middle East where payments were delayed and the contracts proved to be unprofitable.
There are thousands of jobs currently at risk, with some people having already been made redundant, particularly from the smaller suppliers as they are owed a lot of money by Carillion. There are companies who have had to withdraw staff due to the fear that they can’t pay the staff for their work, along with employees that have just been sent home with no explanation. At present, it is unclear what will happen with the contracts. If the contracts are taken back into the public sector, the government, health authorities, or local governments may employ directly or may be taken over by another outsourced service provider. But there are no clear paths with what will happen with the private sector contracts.
If the path chosen is for the contracts to be taken back into the public sector and through the UK government, we may see new positions arise through our framework and help anyone whose job is at risk get back into a reliable and stable role. We will await to see how it turns out in the near future.
That’s it for our blog this week, check back next Friday as some changes will have been made in the office over the next week, which we will be discussing in next week’s blog.