Network Rail regulation and performance

22.01.18

Ex-Carillion employees working on NR projects will be paid until at least April

Network Rail bosses have today confirmed that former Carillion employees working on railway projects will be paid until at least April of this year.

The news follows the announcement that the construction giant – one of NR’s major contractors and a major partner to the HS2 infrastructure project – has gone into liquidation and will no longer be able to follow-through on its commitments.

This has caused problems for the infrastructure manager because Carillion was heavily involved in some major construction work, however the continued employment of the former company’s staff may smooth the transition of the effected projects.

The Official Receiver’s special managers, PwC, have come to an agreement with NR which ensures that they can pay employees’ wages for work done on and supporting NR projects until after Easter.

They have also made arrangements to ensure rail employees are paid as normal in January for work done in January, while the confusion as to Carillion’s status was ongoing.

In a statement, NR said: “Carillion Construction employees working on and supporting Network Rail projects are encouraged to turn up for work as normal and continue to deliver their rail work and projects, secure in the knowledge that they will be paid by PwC for the work they do.

“In addition, funding has been secured to ensure that any suppliers to Carillion will be paid by PwC in respect of work relating to Network Rail projects since Monday (15/01/18) and going forward.”

Together the two groups say they will be working to evaluate the full costs of the work done by Carillion up to liquidation, to provide clarity to suppliers, as well as collaborating on future plans to attempt to ensure these projects are minimally affected.

Initially, warning signs were flagged up when the Financial Conduct Authority (FCA) announced that it would be investigating Carillion following questions about the timeliness of announcements it had made between December 2016 and July 2017.

However, the investigation was announced just days before the company failed, leaving it unable to fulfil its obligations in public contracts across the rail sector as well as other areas of UK industry.

Top image: Network Rail

Have you got a story to tell? Would you like to become an RTM columnist? If so, click here.

Comments

There are no comments. Why not be the first?

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

Five injured in Tube explosion

20/06/2018Five injured in Tube explosion

Five people have been injured in an explosion at a north London Underground station. A Metropolitan Police spokesperson... more >
Strike news: guards row brings fresh strikes to Northern, South Western called off

19/06/2018Strike news: guards row brings fresh strikes to Northern, South Western called off

Members of the Rail, Maritime and Transport (RMT) union have walked out in a fresh dispute between the union and Norther... more >
TOC bosses appear before MPs, blame chaos on infrastructure failures

19/06/2018TOC bosses appear before MPs, blame chaos on infrastructure failures

Bosses from Govia Thameslink Railway (GTR) and Northern Rail cited failures in infrastructure being completed in ti... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the TOC, gives RTM an update on the innovative scheme. Recognising that young people are more likely to take a risk trespassing on railway tracks, C... more > more last word articles >

'the sleepers' daily blog

How biometrics can help improve health and safety measures on railway construction projects

20/03/2018How biometrics can help improve health and safety measures on railway construction projects

ADVERTISEMENT FEATURE Biometric identity, time and attendance specialists Donseed looks at how biometric technology is already starting to enhance health and safety measures on railway construction projects. Advances in technology are starting to transform the way in which the rail network in the UK is managed, operated and maintained.... more >
read more blog posts from 'the sleeper' >

comment

Apprenticeship levy: the latest picture

05/06/2018Apprenticeship levy: the latest picture

Mark Holmes, head of membership and development at NSAR, describes the current resources available to the rail industry to ensure companies of al... more >
Moving in the right direction

05/06/2018Moving in the right direction

Alex Cropper, head of projects group at Transport for Greater Manchester (TfGM), reports on the exciting progress so far in building the Trafford... more >
Overcoming leaves on the line

05/06/2018Overcoming leaves on the line

Paul Gray, professional lead of engineering R&D at the RSSB, explains how latest research proves using double variable rate sanders on trains... more >
Rail: A woman’s world

18/05/2018Rail: A woman’s world

RTM’s Sacha Rowlands reports from a panel debate where six of the industry’s leading figures convened to discuss the fundamental issu... more >

rail industry focus

View all News

interviews

Transforming travel in the north west

06/02/2018Transforming travel in the north west

RTM’s Josh Mines talks to Robin Davis, head of new trains at TransPennine Express (TPE), about the huge rolling stock change journey the co... more >