Congress is extremely concerned by the 8 September 2010 announcement that Connaught and its subsidiary Connaught Partnerships have been placed into administration.
Congress notes the appointment of KPMG as administrators, and further notes this is the biggest corporate failure since Woolworth went into administration.
Congress is alarmed that Connaught workers have been left without information about their future, while others have been dismissed by conference call or text.
Congress believes that reasons for the collapse of Connaught include the immediate impact of the ConDem cuts in public sector budgets, that the stipulations of Best Value were ignored and that Connaught often secured contracts by undercutting rival bids.
Congress recognises that Connaught workers are suffering severe insecurity but also recognises the wider impact of the collapse of Connaught, as many companies in the Connaught supply chain will start to cut jobs.
Congress agrees that the public sector should be the preferred option for the provision of public services and that as an initial priority all Connaught contracts should be brought in-house to ensure consistency of employment and delivery of quality services.
Congress instructs the General Council to:
offer support to all Connaught workers
engage with the Government to secure the long-term employment of Connaught workers
oppose the practice of awarding contracts based purely on price
oppose future outsourcing in public services
campaign to bring back in-house the service provision from any future failures of private sector contractors in the provision of local government services.
Mover: Union of Construction, Allied Trades and Technicians
Seconder: GMB
Supporters: UNISON
Unite
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