Network Rail said it had reached an agreement with the firm supporting the liquidation of Carillion that will guarantee that staff working on Network Rail projects will continue to be paid until at least the middle of April.
PwC, which was appointed as a special manager to the Official Receiver overseeing the liquidation of the company, will be able to pay all Carillion employees working on Network Rail sites until after Easter and is encouraging staff to continue turning up to work as normal.
An agreement has also been reached to pay Carillion suppliers for work undertaken since the news broke on January 15.
In a statement, Network Rail said: “Network Rail and PwC are also working closely together to evaluate the cost of work done on Network Rail contracts in the period up to liquidation with a view to provide clarity to suppliers as quickly as possible.
“Network Rail and PwC continue to work closely on proposals for the future treatment of contracts, staff and suppliers to ensure the continued delivery of these important projects.”
RMT’s general secretary Mick Cash said the announcement would provide some comfort to Carillion staff but that there were questions that remained unanswered.
“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 on-going.”