Unite shocked as 1,160 jobs go at Jarvis Rail

1st April 2010

Unite the union said it was shocked by today's announcement that Jarvis Rail would not be saved, with the loss of over 1,100 skilled jobs.

In a statement issued today (Thursday), the administrator Deloitte said: "After reviewing the business, and conducting negotiations with key stakeholders, the administrators have concluded that it is not possible to continue to trade the business in the absence of further funding."

Unite says the blame for company's downfall lies firmly at the door of the cutbacks at Network Rail. The administrators, Deloitte, had asked Network Rail on Tuesday for confirmation that Jarvis's existing contracts would continue, but no such assurances were forthcoming.

Unite has been working closely with Deloitte to reduce the impact of the closure but the administrators have now confirmed they will slash posts at the company’s head office in York, as well as at Doncaster, Glasgow, Leeds, Newcastle and Peterborough.

Jarvis Rail and Fastline, the two divisions involved in rail engineering and repair, will cease trading. Only the facilities management part of the firm will continue to trade as normal.

Unite's rail organiser, John Kelly, said: "This is extremely sad news for these workers and their families.  Every effort must be made to save their skills and return them to work as quickly as possible.

"It is ironic that the botched privatisation programme of the last Tory government has now come back to bite the former Conservative transport minister Steven Norris who was chair of the company."

ENDS


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