Around 8,500 people worked for Carillion on private sector contracts (Carillion)
Over 90% of the Carillion staff employed on private sector contracts will continue to be paid while the company’s liquidation is carried out, it has emerged.
The Insolvency Service said at midday that most of the companies who employed Carillion have decided that they want those services to continue, and pledged to keep paying for them, say reports.
This will be a relief for the approximately 8,500 people employed on private sector work, including facilities management contracts, who faced lay-offs today.
However, almost 10% of those companies have not made such a pledge, meaning that staff on those contracts face uncertainty, and perhaps job losses.
Worries still abound, as well, for thousands of smaller suppliers to Carillion, who are together owed hundreds of millions of pounds by the failed contractor, a notoriously late payer.
“The Official Receiver is very pleased with the level of support shown by Carillion’s private sector service customers,” a spokesperson for the Insolvency Service said.
“Over the past 48 hours all of the company’s private sector service customers have been contacted to determine their ongoing needs.
“Over 90% of these customers have indicated that they want Carillion to continue providing services in the interim until new suppliers can be found and will provide funding which enables the Official Receiver to retain the employees working on those contracts.
“Work has paused on construction sites, pending decisions as to how and if they will be restarted.”
Trade Association Build UK has estimated that up to 30,000 smaller firms, who acted as subcontractors to the giant Carillion, could be hit by its demise.
