In the wake of the sad news that the giant construction company Carillion has gone into liquidation, thousands of employees fear the loss of their jobs.
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Seeking to Maintain Operational Continuity

Posted by: Warren Drobac
16/01/2018
Industry News

In the wake of the sad news that the giant construction company Carillion has gone into liquidation, thousands of employees fear the loss of their jobs.  The devastating move came when talks between the company, the government and its lenders failed to reach consensus to save the second biggest construction company in the UK. Although the government minister David Lidington has urged staff engaged in public sector contracts to continue coming to work as they still have important work to do alongside the reassurance that they will get paid.  The collapse of Carillion has raised job fears for many highly skilled staff like civil engineers, quantity surveyors and those working in the construction and support services sectors.

Philip Green, the chairman of Carillion that employs 43,000 staff worldwide, 20,000 of which are in the UK, said it was a sad day for the workers, customers, and suppliers of the company. The general secretary of RMT, Mick Cash said it is disastrous news both for the workforce and for public and transport services in Britain.

What Happens Next?

That depends on the actions of the court-appointed official receiver who, together with a team of expert PWC accountants, will review the firm’s financial business. This is a process that could take months, potentially leaving a workforce in limbo, even though other firms are likely to take on some contract staff.

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Aside from whoever takes on Carillion contracts, the new National Infrastructure & Construction Pipeline published by the IPA has recently confirmed a record investment of £500 billion in private and public infrastructure in the UK. This largest and most comprehensive ever Infrastructure and Construction pipeline (with 40% of the proposed projects supported by the government and the rest by the private sector), includes important local projects such as £7.2 billion for new housing construction, over £2.6 billion for the improvement of UK transport networks, flood defence projects, and other major building projects across the country. A major challenge to forge ahead with the ambitious plans for the country is finding enough of the right skilled labour in civil engineering and quantity surveying to meet the demand.
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