Government faces £31m bill for redundancy claims after Carillion collapse

Carillion went bust this year
Carillion went bust this year
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More than £31m has been paid out in redundancies to thousands of workers caught up in the collapse of engineering giant Carillion, new research reveals.

A study by the GMB union found that 6,690 former employees have made a claim for redundancy.

A total of £31.2m has been paid to claimants, with the taxpayer picking up the bill, said GMB general secretary Tim Roache.

Carillion was part of the Private Finance Initiative consortium that rebuilt Portsmouth’s QA Hospital 10 years ago, and was responsible for maintenance until it collapsed this year.

He told the union’s annual conference in Brighton: ‘Bosses were in bed with the Tories, giving huge pay cheques to themselves as the company failed and thousands of people made redundant.

‘As a union we don’t accept that’s how the world should work. So far, we know that nearly 7,000 people have made redundancy claims, costing the taxpayer over £30m.

‘Those workers deserve every penny and more. They have already lost 10 per cent of their pension and any enhanced redundancy rights because of their bosses’ failures, over 1,000 jobs have simply ceased to exist.

‘Those workers, and you and me as taxpayers, should never have been in that position in the first place.’