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| City Link: RMT demands government talks over collapse | City Link: RMT demands government talks over collapse |
| (35 minutes later) | |
| A union has demanded "urgent talks" with ministers and administrators about the collapse of the UK parcel delivery service City Link. | A union has demanded "urgent talks" with ministers and administrators about the collapse of the UK parcel delivery service City Link. |
| The jobs of more than 2,700 staff and about 1,000 contractors are at risk. | The jobs of more than 2,700 staff and about 1,000 contractors are at risk. |
| The government says it is unable to intervene in the administration process. | The government says it is unable to intervene in the administration process. |
| A person connected to the investment firm that owns City Link told the BBC the delivery industry had become too competitive for City Link to survive. | A person connected to the investment firm that owns City Link told the BBC the delivery industry had become too competitive for City Link to survive. |
| City Link called in administrators Ernst & Young (E&Y) on 24 December but an announcement was not made to the media until Christmas Day. | City Link called in administrators Ernst & Young (E&Y) on 24 December but an announcement was not made to the media until Christmas Day. |
| Some City Link employees said they only found out about the move when they were at home and saw it on the news. | Some City Link employees said they only found out about the move when they were at home and saw it on the news. |
| 'Dreadful timing' | 'Dreadful timing' |
| Founded in 1969, City Link was acquired by restructuring specialist Better Capital in April 2013. It invested £40m but E&Y said City Link had incurred substantial losses over several years and the money could not help it turn the firm around. | Founded in 1969, City Link was acquired by restructuring specialist Better Capital in April 2013. It invested £40m but E&Y said City Link had incurred substantial losses over several years and the money could not help it turn the firm around. |
| Mick Cash, the general secretary of the RMT union, said the "disgraceful timing of the City Link announcement at the start of the festive season must not be allowed to delay and hamper efforts to rescue the jobs". | Mick Cash, the general secretary of the RMT union, said the "disgraceful timing of the City Link announcement at the start of the festive season must not be allowed to delay and hamper efforts to rescue the jobs". |
| "Not only was it the most brutal and callous way to treat nearly 3,000 staff but RMT believes there may have been more cynical motives behind it which we want the government to investigate," he added. | "Not only was it the most brutal and callous way to treat nearly 3,000 staff but RMT believes there may have been more cynical motives behind it which we want the government to investigate," he added. |
| He said RMT wanted meetings with both the administrators and Business Secretary Vince Cable. | He said RMT wanted meetings with both the administrators and Business Secretary Vince Cable. |
| Speaking on BBC Radio 4's Today programme, Mr Cash suggested Better Capital had not allowed City Link to develop and should have taken a more long-term view. | Speaking on BBC Radio 4's Today programme, Mr Cash suggested Better Capital had not allowed City Link to develop and should have taken a more long-term view. |
| Better Capital says it cannot respond while the stock market is closed. | Better Capital says it cannot respond while the stock market is closed. |
| A source connected to Better Capital told BBC Radio 4's World At One programme the investment firm very much regretted City Link had fallen into administration but said very little could have been done to change its fate. | A source connected to Better Capital told BBC Radio 4's World At One programme the investment firm very much regretted City Link had fallen into administration but said very little could have been done to change its fate. |
| The source acknowledged City Link had made some errors in customer service and its IT systems, but said the delivery sector had become too competitive and prices were being squeezed. | The source acknowledged City Link had made some errors in customer service and its IT systems, but said the delivery sector had become too competitive and prices were being squeezed. |
| 'Ready to engage' | 'Ready to engage' |
| Labour MP Ann McKechin, a member of the Business Select Committee, said the government "should offer any help that is required" to see if any City Links jobs could be saved. | Labour MP Ann McKechin, a member of the Business Select Committee, said the government "should offer any help that is required" to see if any City Links jobs could be saved. |
| "The timing has been really dreadful for all the workers concerned who were clearly working incredibly hard up to Christmas," she said. | "The timing has been really dreadful for all the workers concerned who were clearly working incredibly hard up to Christmas," she said. |
| "Every effort should be made to try and ensure that if there is any part of the business that can be saved or salvaged it can be and jobs retained." | "Every effort should be made to try and ensure that if there is any part of the business that can be saved or salvaged it can be and jobs retained." |
| She added that the government should be "making very clear its dissatisfaction" about the timing of the announcement. | She added that the government should be "making very clear its dissatisfaction" about the timing of the announcement. |
| City Link has stopped accepting parcels from customers at its head office and transport hub in Coventry, where 404 people are employed, 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, where 404 people are employed, its three other transport hubs and 53 UK depots. |
| These include Basingstoke, Belfast, Bristol, Cardiff, Carlisle, Edinburgh, Hatfield, Heathrow, Lincoln, London, Milton Keynes, Manchester, Newcastle, Norwich, Nottingham, Plymouth and Warrington. | |
| 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. | 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. |
| City Link employees and subcontractors have been expressing their anger and frustration at the developments. | City Link employees and subcontractors have been expressing their anger and frustration at the developments. |
| A subcontractor from Fife told the BBC: "I'm totally and utterly gutted. This has happened after they spent money on new uniforms and new scanners. | A subcontractor from Fife told the BBC: "I'm totally and utterly gutted. This has happened after they spent money on new uniforms and new scanners. |
| "Everyone thought we had turned a corner and things would be getting a lot better, but obviously not". | "Everyone thought we had turned a corner and things would be getting a lot better, but obviously not". |
| A spokesman for the Department of Business said: "This is obviously worrying news for the company, employees and their families, especially coming over Christmas. | A spokesman for the Department of Business said: "This is obviously worrying news for the company, employees and their families, especially coming over Christmas. |
| "The government cannot intervene directly in the administration process but we stand ready to engage where possible once a way forward is identified." | "The government cannot intervene directly in the administration process but we stand ready to engage where possible once a way forward is identified." |