Posted by: westlancashirerecord | March 14, 2019

45,000 UK Jobs At Risk While We Are In The EU?

In one company alone, Interserve

while the UK has membership of the “gloriously successful EU”, 45,000 of its UK  jobs are at risk. Some of them are in West Lancashire. Our MP Rosie Cooper is quoted in a letter that “The Government  must provide assurances to MPs and the public it will prioritise the protection of jobs…once the UK has left the EU”.

And therein lies Rosie Coopers’ enigma. 

Rosie Cooper Labour, West Lancashire “On Sunday, the BBC reported that Interserve is likely to go into administration on Friday. What steps is the Minister taking to protect jobs and pensions, should Interserve collapse?”

Oliver Dowden The Parliamentary Secretary, Cabinet Office As the hon. Lady would expect, we keep under review the situation in relation to all our strategic suppliers. I assure her that we take appropriate contingency measures in respect of every strategic supplier”.

Interserve Skelmersdale

has a vacancy for a Paediatric Care Assistant. It probably has many more. The problems at Interserve are well documented and have echoes of Carillion that ended up in liquidation early in the year.

Carillion was owed huge sums of money in the Middle East and was pursuing contracts at all costs. Interserve is not in quite the same situation. However, it does have £600m+ worth of debt and it is seeking refinancing. The banks will convert their debt to shares, at a massive discount, effectively handing control to its creditors. The shares have now fallen by 80% in the year.

In the latest twist the shareholders are incensed by the lenders proposal which will see all the equity virtually wiped out and are putting together a plan B where they retain 30% of the equity.

The crunch meeting is to be held 15th March.

Interserve is a major contractor to the British Government, in fact it is bigger than Carillion with 75,000 employees worldwide and many of its contracts are loss making.

Interserve announced on Monday it had been awarded a £25m contract from Cwm Taf University Health Board as part of a £36m pound redevelopment of Prince Charles Hospital in Merthyr in Wales and this has resulted in a bump up for its share price. The Government has also said that it would continue to grant it contracts. Without the government saying it would be awarding it contracts in the furture would mean certain collapse. If the business was put into administration it is actually likely that the operational side of the business will continue after a so called pre-pack administration so it will be the shareholders who will be wiped out.

Interserve earns two-thirds of its £2.9bn revenue from Whitehall outsourcing contracts. It is perhaps appropriate, then, that its legal adviser is Slaughter and May!

Rosie’s enigma? The UK being in the EU isn’t helping to save UK Interserve jobs. To claim otherwise is pie in the sky. It’s just another Serco, and who knows better than Rosie about Serco…Beacon Park Golf Course landfill ripoff anyone?

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: