City Link, a Coventry-based courier and logistics firm with some 53 depots nationwide, has announced insolvency plans that will result in thousands of redundancies on New Years' Eve. The ITF-affiliated RMT, following an emergency meeting yesterday with ‘restructuring experts’ Ernst & Young, has confirmed that City Link and its financial backers will have no liability for redundancy payments and that staff will have to apply to the statutory government scheme.
Stephen Cotton, ITF General Secretary today said “Not only has there been severe financial mismanagement, we now know that City Link were working with insolvency advisors since November without telling the staff or their union. It’s high time to show the loyal City Link workforce and their families the respect they deserve. This includes all workers; whether directly employed workers, self-employed drivers and third party workers.” He continued
"The ITF family calls on the UK business secretary, Vince Cable, to act now. Don’t allow the workers to take the brunt of the financial mismanagement they have had no hand in, and don’t wait until 2015. Meet with the RMT today to put together a Government backed rescue plan that protects the business and the jobs it supports.”
RMT press contact:
+ 44 (0) 7831 465 103