Over 900 workers employed through sham agencies have been left without pay.
Liquidators brought in to manage and transfer Carillion assets, have reportedly not authorised wages due out to over 900 workers employed through the Carillion owned employment agency Carillion Rail Resources.
In a myriad of confusing umbrella companies and secondary agencies, where workers actually have to pay a processing fee to get their wages. This is a further slap in the face to a workforce who have helped upgrade the Shotts to Glasgow rail link and are currently working on a platform extension in Edinburgh Waverley Station.
Using a system that has plagued the construction industry for years. Carillion has set up an employed agency, allowing them to hire and fire people at an arm's length whilst allowing wiggle room around many hard-fought statutory workers rights. This agency then forces many of its workers to use payday umbrella companies, that deduct a processing fee for calculating tax and National Insurance before releasing their wages. This is a system designed to cut operating costs and admin staff within construction companies, but is often dressed up as a way of affording workers increased flexibility.
Workers employed by these agencies are not currently guaranteed an offer of employment by any company who picks up the projects after Carillion’s liquidation. Level 2 and 3 apprentices who were due to move up a grade have had their contract terminated on the 31t of January. Even those employed ‘books in’ or PAYE have no assurances that current terms and conditions will be met, because the Transfer of Application (TUPE) will not apply due to a winding-up order being issued against the company.
Carillion a global company known to have been guilty of blacklisting workers who were members of trade unions, have a long history of opposition to and organised workers. The greed and gamble of the corporate manager on the stock market has been their ultimate downfall, however, it is unfortunately, the workers who create the wealth who are the hardest hit by corporate greed.
We send our support to the workers affected by this corporate criminality and demand that every penny earned, must be paid out.
Any worker who wishes to remain on any of the current projects must be given a retaining wage and an offer of employment equal to or greater than the one they were on.
As many of the projects handed to Carillion are Scottish Government infrastructure projects it is the responsibility of the Scottish Government to ensure the rights and employment of all workers are protected.
RISE are hosting a discussion on the potential economic impact the Carillion collapse will have and will look at how we can prevent further public money being wasted by global private enterprise.
Pollokshaws Burgh Halls
Glasgow, 31st of January, 7 - 9 pm.
Speakers include Sarah Collins Policy officer at the STUC and Ben Wray Head of Policy at the think tank Commonweal.