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City Link closure disgraceful, RMT union says | City Link closure disgraceful, RMT union says |
(35 minutes later) | |
The Christmas Day announcement that parcel delivery firm City Link had gone into administration was "disgraceful", a union has said. | The Christmas Day announcement that parcel delivery firm City Link had gone into administration was "disgraceful", a union has said. |
RMT general secretary Mick Cash said it was "shocking" to have "sprung this announcement once all the Christmas deliveries have been completed". | RMT general secretary Mick Cash said it was "shocking" to have "sprung this announcement once all the Christmas deliveries have been completed". |
The Coventry-based firm, which employs 2,727 staff, made the move on Christmas Eve after "substantial losses". | The Coventry-based firm, which employs 2,727 staff, made the move on Christmas Eve after "substantial losses". |
Administrators warned of "substantial redundancies" in the coming days. | Administrators warned of "substantial redundancies" in the coming days. |
Mr Cash said the decision to go into administration was the "bitterest blow any group of workers could receive on Christmas Day". | Mr Cash said the decision to go into administration was the "bitterest blow any group of workers could receive on Christmas Day". |
"RMT will do everything within its power to mobilise a political and industrial fight to save the thousands of jobs that have been put at risk as a result of this shock announcement," he said. | "RMT will do everything within its power to mobilise a political and industrial fight to save the thousands of jobs that have been put at risk as a result of this shock announcement," he said. |
"The way it's happened... that on Christmas Day they've done this to our members is disgraceful." | "The way it's happened... that on Christmas Day they've done this to our members is disgraceful." |
The RMT told its members on Christmas Eve that it understood that wages owed up to 31 December would be paid, but any further payments were not guaranteed. | The RMT told its members on Christmas Eve that it understood that wages owed up to 31 December would be paid, but any further payments were not guaranteed. |
City Link, owned by investment firm Better Capital, called in administrators Ernst & Young because no buyer had been found to save the company. | City Link, owned by investment firm Better Capital, called in administrators Ernst & Young because no buyer had been found to save the company. |
Ernst & Young said some staff would be retained to return parcels to customers and help with winding down the company. | Ernst & Young said some staff would be retained to return parcels to customers and help with winding down the company. |
City Link has stopped accepting parcels from customers at its head office and transport hub in Coventry, its three other transport hubs and 53 UK depots. | City Link has stopped accepting parcels from customers at its head office and transport hub in Coventry, its three other transport hubs and 53 UK depots. |
Operations will be suspended at its depots until Monday, when customers and recipients will be able to collect parcels - which they have been urged to do as soon as possible. | Operations will be suspended at its depots until Monday, when customers and recipients will be able to collect parcels - which they have been urged to do as soon as possible. |
The firm's online parcel tracking system remains live and a phone helpline will be open on Saturday and then from 29 December. | The firm's online parcel tracking system remains live and a phone helpline will be open on Saturday and then from 29 December. |
'So furious' | 'So furious' |
Simon Judd, from Leigh-on-Sea in Essex, said: "I'm a sub-contractor with City Link, now find I have a liveried van and no work." | Simon Judd, from Leigh-on-Sea in Essex, said: "I'm a sub-contractor with City Link, now find I have a liveried van and no work." |
He added: "They've got rid of most employed drivers at my depot, and presumably nationwide. Just have to hope I can find some work elsewhere, after getting van made white." | He added: "They've got rid of most employed drivers at my depot, and presumably nationwide. Just have to hope I can find some work elsewhere, after getting van made white." |
One City Link worker, who wished to remain anonymous, called the situation "utterly disgraceful". | One City Link worker, who wished to remain anonymous, called the situation "utterly disgraceful". |
"I worked on Christmas Eve with no warning this would happen; I found out from the news," he said. | "I worked on Christmas Eve with no warning this would happen; I found out from the news," he said. |
"I am so furious with what has happened, I have no idea what I'll do. I have no money since it's Christmas so I don't know where next month's rent will be coming from, where will I live? How will I eat?" | "I am so furious with what has happened, I have no idea what I'll do. I have no money since it's Christmas so I don't know where next month's rent will be coming from, where will I live? How will I eat?" |
Hunter Kelly, of Ernst & Young, said: "City Link Limited has incurred substantial losses over several years. | Hunter Kelly, of Ernst & Young, said: "City Link Limited has incurred substantial losses over several years. |
"These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base. | "These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base. |
"The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company." | "The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company." |
Ernst & Young will "provide support to employees relating to potential redundancies", Mr Kelly added. | Ernst & Young will "provide support to employees relating to potential redundancies", Mr Kelly added. |
Founded in 1969, City Link said on its website it had annual revenues of approximately £300m, a fleet of 1,700 vehicles and delivered 60 million items across the UK and worldwide each year. | Founded in 1969, City Link said on its website it had annual revenues of approximately £300m, a fleet of 1,700 vehicles and delivered 60 million items across the UK and worldwide each year. |
Are you an employee of City Link? Are you expecting a delivery from the company? You can share your experiences by emailing haveyoursay@bbc.co.uk. If you are willing to talk to a BBC journalist, please include a contact telephone number. | |
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