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Over 300 ex-Carillion rail staff axed

More than 300 staff working on Carillion rail contracts have been made redundant, Construction News has learned.

The official receiver announced today that 337 former Carillion employees would lose their jobs later this week as the contractor’s contracts transferred to new suppliers.

CN understands 329 of these will come from the rail delivery side of Carillion’s business.

The receiver also revealed that a further 835 jobs had been saved, taking the total to 11,000. CN understands none of these 835 roles are in construction-related positions.

The failed contractor was Network Rail’s second biggest supplier in the 12 months to 31 March 2017, with £372m of work.

Several of its contracts have been picked up by new contractors following the firm’s liquidation.

Amey acquired some of Carillion’s flagship Network Rail contracts in February.

These included the North-west electrification contracts, the completion of the Network Rail work between Old Oak Common and Paddington, and Carillion’s position on the Infrastructure Projects Central Panel covering the East Coast and Midland main lines.

An Amey spokesperson told CN it had not made any redundancies as part of the process of taking on the Network Rail contracts.

In March, Austrian firm Powerlines bought out the collapsed contractor’s stake in their 50:50 rail joint venture.

A Powerlines spokesperson said it had saved 220 jobs as a result of acquiring the stake in the JV and that its job count had increased since the buyout to 250.

Over the weekend CN revealed that Carillion’s construction arm had liabilities of nearly £7bn when it collapsed in January.

A Network Rail spokesperson said: “Network Rail have been working closely with the Official Receiver’s special manager - PwC - to transition the Carillion contracts in a way that aims to minimise impact on the projects and promote continuity.

“It is regrettable that there have been redundancies within this process, but there have also been successes with a significant number employees finding employment with alternative suppliers, the most significant being the acquisition of a substantial portion of contracts by Amey which secured around 700 jobs. We also implemented a bespoke agreement with PwC to guarantee employee salaries until 14 April 2018, which we hope gave employees some stability and an opportunity to find alternative employment during this time.”

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