Workers’ wages guaranteed until April

Network Rail has reached agreement with Carillion’s Official Receiver’s special managers PwC to guarantee the wages of staff working on and supporting Network Rail projects until at least mid-April.

Carillion employees affected will also be paid for work done in January. In a statement, NR urged Carillion Construction employees working on and supporting its projects to turn up for work as normal. NR and PwC say they are working closely together to evaluate the cost of work done on NR contracts in the period leading up to liquidation, “with a view to provide clarity to suppliers as quickly as possible”.

The RMT union welcomed the announcement, but pointed out that issues around sub-contractors and pensions remain to be addressed.

General Secretary Mick Cash said: “This is at least some respite for our members at the end of a traumatic week. However, there is no commitment on sub-contractors’ wages, and no commitment as to whether directly employed staff or sub-contractors who worked throughout Christmas and New Year will receive those payments. The cash has already been paid over to Carillion, but no promise to pay the workers has been given and that needs to be sorted out urgently.

“The employment and pension status of Carillion staff has also not been established, and RMT will be seeking assurances that pension contributions issues are addressed.

“RMT continues to push for a long-term solution and we believe that means organising for Carillion’s work, and their employees, to be taken directly into Network Rail to ensure stability and security for the future.

“RMT is also continuing to argue the case for those Carillion rail workers not covered by Network Rail to be given cast-iron guarantees for the future by the train operating companies and Transport for London. Our talks around securing the jobs and futures of all of our members hit by the Carillion collapse are ongoing.”