Nationwide has revealed it will bring 250 Carillion staff working on a £350m facilities management contract in-house.
Carillion workers will become Nationwide employees from next Monday (22 January), the building society said today.
“During an unsettling time for Carillion employees we felt it was important to provide them with some reassurances,” a Nationwide spokeswoman said.
The firm will also take on 1,500 staff who work for third-party suppliers related to the contract.
The building society signed a new seven-year facilities management deal with Carillion in 2016.
The contract covers upkeep of Nationwide’s Swindon headquarters, its 15 corporate offices, its data centres and its 700 high street branches across the UK.
Nationwide said earlier this week it had been “seeking clarity” over the Carillion situation after the collapse of the UK’s second-largest contractor.
But it had warned that it understood Carillion staff were only going to be paid until the end of this month.
The spotlight has fallen on Carillion’s private and public sector contracts after the Wolverhampton-based firm went into compulsory liquidation on Monday, owing more than £1.3bn to its banks. The contractor employs around 19,500 staff in the UK.
The Insolvency Service said yesterday that 90 per cent of Carillion’s private sector service clients had indicated they wanted the contractor to continue offering services “until new suppliers can be found”.
However, work on many of Carillion’s construction sites has been paused while decisions are made on “how and if they will be restarted”, the Insolvency Service said.