Calls for overhaul of public procurement system after Carillion's collapse

"Government now faces a stark choice: bail Carillion out or let public services and projects suffer. The folly of private ownership of the hospitals is exposed fully by this bankruptcy", OCHU president Michael Hurley said in a statement.

Britain's largest construction firm, which employs 20,000 people in the United Kingdom, collapsed yesterday - after issuing a string of profit warnings in recent months.

Employees on public sector contracts will continue to be paid, whereas those on private sector contracts will receive no pay after Wednesday.

In Liverpool, the city's mayor, Joe Anderson, said "solid contingency plans" were in place to ensure the £490m Royal Liverpool University hospital would not be delayed.

The OCHU - the healthcare arm of the Canadian Union of Public Employees in Ontario - and Unifor together represent almost 50,000 staff in hospitals across the province.

The Government has also told former Carillion workers already receiving their pensions that they will continue to receive payments. Employing over 43,000 staff worldwide, primarily in the UK, Carillion was at the forefront of many high profile contracts, such as the construction of the HS2 high-speed railway project and the running of 50 prisons in the UK.

"The position of private sector employees is that they will not be getting the same protection that we're offering to public sector employees, beyond a 48-hour period of grace", Lidington said.

City region metro mayor Steve Rotheram said the liquidation of one of the country's largest contractors "raises some very hard questions around what happens to the many publically-funded contracts, including construction of the new Royal Liverpool Hospital and elements of HS2, that it will now be unable to honour".

The worker, who said he learned the firm had gone into liquidation from its Facebook page, added he will get paid for this week and next but after that did not know what would happen.

MI family torn apart as husband deported to Mexico
Garcia was brought to the United States by his parents, also illegal immigrants, at the age of 10, according to reports. Garcia's wife, Cindy, appeared on CNN to call on President Trump to fix the "broken" immigration system.

Carillion announced its immediate liquidation on Monday after the heavily-indebted British contractor failed to secure a financial rescue from the United Kingdom government or banks in last-ditch talks.

Concerns have also centred on former Carillion chief executive Richard Howson, who pocketed £1.5 million in salary, bonuses and pension payments during 2016.

But it's too late for Carillion, which ran its affairs in a helter-skelter, irresponsible manner, yet still managed to keep the Government on side until the very end.

September 29, 2017 - Carillion had its second profit warning in 2017 and said it may need to sell shares to shore up its balance sheet.

Carillion was once valued above £2b but the revelations about its rising debt sparked a crisis in July a year ago when it issued a profit warning, suspended its dividend, and said key contracts were losing money as debt rose.

The company is the embodiment of the privatisation agenda carried out by successive Tory and Labour governments through the Private Finance Initiative (PFI) and Public-Partner Partnership schemes.

Lidington said he would not pre-empt the receiver's review but noted that "severe penalties" could be imposed if misconduct was found.

Locally it was responsible for services contracts and some station improvements for train operator Northern, some of the electrification upgrades to the lines for Network Rail and was due to take up service contracts at Weeton and Fulwood Barracks for the MOD.

"It's going to be short-term pain for some of our workers but we are a busy company, we have contracts coming in - we've just won a big new hotel - but that doesn't start for a few weeks".

Related News:



Most liked

Venezuela coup 'action hero' Oscar Pérez is captured by Maduro forces
In all, 125 people were killed between April and July as authorities used force to put down protests to unseat Maduro. The cell had planned to set off a auto bomb outside the embassy of "a beloved and prestigious country", Maduro said.

Bad WiFi? These Google products could be 'shutting down' your home internet
Although Google is working on a fix, which is likely to arrive as an update, there is no specific time frame mentioned for it. If you're suffering from the issue, TP-Link recommends disabling the Cast feature on your Android phone and/or tablet for now.

Here are school closings in Columbus area
At 12:45 p.m., the Harris County School District announced it will be closed Wednesday, but no word about after-school activities. Lusher Charter School Freret Campus will dismiss at 2 p.m. and Lusher Charter School Willow Campus will dismiss at 2:30 p.m.

Myanmar And Bangladesh Agree To 2-Year Timeframe For Rohingya Return
A Rohingya refugee stands in a displaced-persons camp in Cox's Bazar, Bangladesh, earlier this month. Officials plan to start the repatriation process from January 23.

Qatari fighter jets intercept UAE commercial plane
The second incident, related to an Etihad plane flying from Abu Dhabi to Bahrain (EY23b) is being investigated, the CAA said. Qatar has denied the charges and accused the four countries of trying to make it conform to their foreign policy positions.

Four officers shot in SC
All four officers and McCall were transported to Carolinas Medical Center in Charlotte, North Carolina . Doty, who has been with YCSO for 12 years, was reportedly in critical condition Tuesday afternoon.

AT&T being urged to stop its commercial relationship with Huawei
Neither of the companies offered official statements , but AT&T did tell Reuters that it's yet to make a decision on 5G suppliers. It told Reuters that its equipment is used by 45 of the world's top 50 carriers, and that security for its clients is paramount.

Detroit stars we want but can't have
Every motor show features new cars restricted to certain markets, but the United States has more than most. Top speed is raised to 163 miles per hour , an 8 miles per hour increase over the GT.

Pregnant Kylie Jenner Caught One of Her Employees Trying to Photograph Her
Although Kylie Jenner is believed to be over six months pregnant with a baby girl, she won't be announcing the news anytime soon. The pregnant reality star's baby announcement was finally shown in the latest episode of KUWTK .

Freedom House again recognizes Ukraine as 'partly free' country
Freedom House says it is an independent body and its assessment reflects its own examination of the data. According to Freedom House , democratic principles weakened globally for the twelfth consecutive year.

Snow and ice weather warning for West Midlands as temperatures fall
The showers turning wintry in many areas by dawn with falls of snow possible over high ground. In addition, warnings for strong winds have also been issued, especially for Wednesday night.

South Africa summons US diplomat to explain Trump 's...hole' comment
President Trump took the country's dialogue backwards and his comments were egregious- no matter your political persuasion. The comments were said to have come after Trump met this week with Norwegian Prime Minister Erna Solberg in Washington .

Nestlé Is Selling Its US Candy Brands To The Maker Of Nutella
Nestle said in a statement announcing the sale that it remains "fully committed" to its chocolate business around the world. Nestle has snapped up companies that make vegetarian meals, vitamins and luxury coffee.

Jakarta stock exchange ceiling collapse: Dozens hurt in chaotic scenes in Indonesia
The accident happened shortly after noon local time (12 noon in Thailand) while the market was on its lunchtime break. A worker on the 23rd floor told Harvey they felt the building shake after hearing a loud "thud".

Struggling Thomas excited for Cavs-Warriors
The Raptors got within 94-85 with 3:16 left in the period before Durant drilled back-to-back 3-pointers to help restore order. He scored 17 points in his first game as a Cavalier , but he has not been a super hero in wine and gold - at least not yet.