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Union calls for urgent talks with Government about City Link jobs Union calls for urgent talks with Government about City Link jobs
(about 2 hours later)
The transport union representing nearly 3,000 workers facing redundancy at the parcel delivery group City Link, have asked for urgent talks with the government to help save jobs. The transport union representing 2,727 workers facing redundancy at the parcel delivery group City Link, will meet the Business Secretary, Vince Cable, in the new year in talks they hope will help save jobs.
After almost a year of industrial strife at the Coventry-based company, where the RMT union held a series of protests complaining against “bulldozed” changes to working conditions, contracts and overtime, along with closed depots, it was announced on Christmas Eve that the investment firm, which owns City Link, had called in administrators. A statement by accountants Ernst & Young (EY) said the company had taken the decision after “years of substantial losses”. Mr Cable agreed to the emergency talks last night, saying news of the redundancies had come as  a “bitter blow to the workforce [of City Link]” who he said had served the parcel delivery company “loyally”  and now faced “uncertainty over Christmas”. Officials at BIS have been ordered by Mr Cable to keep him informed of developments at the Coventry-based firm where administrators have already told the  threatened workers that they should expect “substantial redundancies”.
Mick Cash, general secretary of the RMT called the Christmas Eve announcement of redundancies, “absolutely shocking”. The union has contacted the Business Secretary, Vince Cable, and asked for immediate talks to explore ways of minimising job losses. After almost a year of industrial strife at the company, where the RMT union held a series of protests complaining against “bulldozed” changes to working conditions, contracts and overtime, along with closed depots, it was announced on Christmas Day that the investment firm, which owns City Link, had called in administrators. A statement by accountants Ernst & Young (EY) said the company had taken the decision after “years of substantial losses”.
The union said the timing of redundancies, coming after the workforce had almost finished Christmas deliveries, was “brutal and callous”, and claimed it wanted the government to investigate if there was another, as yet undisclosed, agenda behind the decision. Mick Cash, general secretary of the RMT, called the announcement of redundancies “absolutely shocking”.
City Link employs 2,727 workers. EY said “substantial redundancies” should be expected because no buyer had been found despite recent extensive marketing which had put the company up for sale. The union said the timing of redundancies, coming after the workforce had almost finished Christmas deliveries, was “brutal and callous”, and said it wanted the Government to investigate if there was another, as yet undisclosed, agenda behind the decision. EY said no buyer for the company had been found despite recent extensive marketing which had put the company up for sale.
Last year, City Link was sold for £1 by its previous owner, Rentokil, to the private equity company, Better Capital. The investment firm is headed by Jon Moulton, the executive who narrowly missed buying the Rover car group. A new funding package of £40m was put in place to help turn round mounting losses at City Link.  City Link’s administrators have suspended business at all its depots until Monday, when customers and those expecting deliveries can collect parcels. Some staff will be retained to help return parcels and assist with winding down the company.
Hunter Kelly, the joint administrator, said the company’s losses reflected a combination of “intense competition in the sector, changing customer and parcel recipient preferences and difficulties for the company in reducing its costs base.” Customers who contacted the company – and those expecting deliveries who have been notified this may not happen – can retrieve parcels on or after 29 December.
Customers who contacted the company – and those expecting deliveries who have been notified this may not happen – can retrieve parcels on or after 29 December. The company’s 53 depots in the UK will remain open for a short period of time to facilitate this.