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

ORR report: ‘No one took charge’ in May timetable chaos, ‘everyone made mistakes’

20/09/2018ORR report: ‘No one took charge’ in May timetable chaos, ‘everyone made mistakes’

A scathing report into the May timetable chaos has blasted transport secretary Chris Grayling, Network Rail, and the DfT... more >
Government rejects claims of transport spending ‘regional imbalance’

20/09/2018Government rejects claims of transport spending ‘regional imbalance’

The Transport Committee has urged the DfT to “be more specific about the economic rebalancing effects it... more >
DfT quietly pulls the plug on CrossCountry franchise competition

20/09/2018DfT quietly pulls the plug on CrossCountry franchise competition

The government has decided to pull the plug on the CrossCountry franchise competition as a result of its rail review ann... 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

The East Coast franchise report tells us what we already knew: it was a bid set up to fail

18/09/2018The East Coast franchise report tells us what we already knew: it was a bid set up to fail

RTM's Jack Donnelly assesses what the Transport Committee's latest report on the VTEC franchise means for the industry as a whole “Even now, there is no concrete plan, nor timescales, for the interim operator of this franchise. From our inquiry, we cannot be sure, and cannot reassure passengers or public, that the arrangements ... more >
read more blog posts from 'the sleeper' >

comment

Northern Powerhouse Rail: The need for change

18/09/2018Northern Powerhouse Rail: The need for change

Northern Powerhouse Rail (NPR) will be transformational for the north – it will change the way people live, work, and play. It will rebalan... more >
Innovation through people and technology

18/09/2018Innovation through people and technology

Ian Prosser, HM chief inspector of railways and director of railway safety at the ORR, picks out the key industry challenges to focus on based on... more >
Why we all must mind the gap

18/09/2018Why we all must mind the gap

Clair Mowbray, chief executive of the National College for High Speed Rail (NCHSR), explains how we can all ensure the UK’s next generation... more >
3D printing: from virtual to real

11/09/20183D printing: from virtual to real

Like so many other technological advancements, 3D printing has moved from being the stuff of science fiction, through niche industrial applicatio... more >

rail industry focus

View all News

interviews

Going global: an interview with Network Rail’s Leevan Finney

29/08/2018Going global: an interview with Network Rail’s Leevan Finney

RTM’s Jack Donnelly sat down with one of the leading minds behind Network Rail’s most advanced and innovative rail maintenance techno... more >