MP backs report criticising lack of help for workers

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MP Mike Hancock has backed the outcome of the report that has criticised the lack of help for City Link workers who lost their jobs.

The Portsmouth South MP says that there are more and more examples of workers not being given what they are owed.

He said: ‘There are increasing incidents of workers being the ones that don’t get the proper protection or help that they deserve.’

Mr Hancock added that there needs to be better protection for workers.

‘The help that needs to be provided to workers must be on the same level of that existing for investors and management,’ he said.

The collapse of delivery firm City Link, which included the closure of the firm’s Fareham base, has exposed how company insolvencies do not offer enough protection to workers, according to a damning report.

MPs from two select committees said the system was too heavily skewed in favour of investors and the taxpayer, calling for the balance to be shifted.

The report into the controversial closure of the company over Christmas said that under current rules, it was in the financial interest of a company to break the law and ignore the statutory redundancy consultation period.

The company was placed into administration at 7pm on Christmas Eve following several years of losses.

For many of the 2,727 staff and 1,000 contractors, the first confirmation that their jobs and livelihoods were at risk came from reports in the media.

Under the current system, those who have given secure credit to a company are ‘cushioned’ from the impact of an insolvency because losses are borne by workers, contractors or suppliers.

Chuka Umunna, shadow business secretary, said: ‘It is inexcusable that staff at the firm were not informed of it entering administration until Christmas Day given that the firm’s management were aware of concerns ahead of this. It is vital that lessons are learned from City Link’s demise.’