Sun, 26th May 2019
The government has set up a task force with the intent of supporting workers and businesses that have been affected by the collapse of the construction and outsourcing company Carillion. The company employed 46,000 people worldwide, and around 20,000 of those jobs are in the UK and are now under threat. They also worked with a huge number of outsourcing companies, who will now be facing financial issues because Carillion owes them a large amount of money.
The task force includes business representatives, trade unions, lenders and government representatives and will be working to offer support to those who are worst affected by the collapse of the company. They aim to protect not just outsource workers and employees, but also those on zero-hours contracts. There are fears about jobs, pay and pensions, all of which will need addressed.
The TUC is campaigning for the public service contracts held by Carillion to be brought back in-house, and is also asking that the government conduct a risk assessment on other major outsourcing firms. Longer term, they would like to see a moratorium on future outsourcing, because of the risk that comes with having major contracts assigned to private companies. Carillion was in the “too big to fail” category, and like major banking collapses, the long-term impact of what has happened at the company will take some time to be felt. There are many companies that depended on their services, and also on income from Carillion’s contracts, that could face serious issues now.