{"id":17193,"date":"2019-02-06T17:58:56","date_gmt":"2019-02-06T17:58:56","guid":{"rendered":"http:\/\/unitelive.org\/?p=17193"},"modified":"2020-11-12T12:57:44","modified_gmt":"2020-11-12T12:57:44","slug":"outsourcing-iceberg","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=17193","title":{"rendered":"Outsourcing iceberg"},"content":{"rendered":"
<\/div>\n

A plan<\/span> to rescue beleaguered<\/span> public sector<\/span> outsourcing giant Interserve<\/span> announced<\/span> by the firm\u00e2\u20ac\u2122s bosses today (<\/span>6 January)<\/span> is not guaranteed<\/span> to<\/span> work<\/span>, Unite<\/span> has<\/span> warned. <\/span><\/p>\n

 <\/p>\n

Speaking after the Parliamentary launch of the union\u00e2\u20ac\u2122s<\/span> Ending Bandit Capitalism<\/span>: Learning lessons from Carillion\u00e2\u20ac\u2122s collapse<\/span><\/a> report<\/span> \u00e2\u20ac\u201c designed to prevent firm\u00e2\u20ac\u2122s like <\/span>Interserve<\/span> from going under \u00e2\u20ac\u201c Unite<\/span>, which represents 1,700 workers at the firm,<\/span> said <\/span>statements about the potential<\/span>\u00c2\u00a0success of the <\/span>rescue <\/span>deal<\/span> are at this point \u00e2\u20ac\u015bpure speculation\u00e2\u20ac\u0165. <\/span><\/p>\n

 <\/p>\n

Interserve<\/span><\/a> said <\/span>the<\/span> plan to reduce <\/span>its \u00c2\u0141<\/span>8<\/span>00m debt pile by creating\u00c2\u00a0<\/span>\u00c2\u0141480m of<\/span> new shares<\/span> to<\/span> be given to its<\/span>\u00c2\u00a0creditors<\/span> would<\/span> provide a \u00e2\u20ac\u015bstrong future\u00e2\u20ac\u0165 for the firm<\/span>,<\/span> which employs <\/span>45,000 people and provides <\/span>public <\/span>services<\/span> including hospital cleaning, school meals and construction projects. <\/span><\/p>\n

 <\/p>\n

Banks<\/span> that<\/span> have loaned Interserve money have previously <\/span>pushed for <\/span>the firm<\/span> to s<\/span>ell off <\/span>its<\/span> profitable building supplies arm <\/span>RMDK<\/span> \u00e2\u20ac\u201c<\/span>\u00c2\u00a0a move\u00c2\u00a0that was<\/span> blocked by the Cabinet Office<\/span> due to the dangers of it <\/span>precipitating a company meltdown. <\/span><\/p>\n

 <\/p>\n

Instead<\/span> the new plan will see the banks<\/span> be given <\/span>more than a 90<\/span> per cent share in the business through the debt for equity <\/span>exchange<\/span>, while \u00c2\u0141350m of debt will<\/span> also<\/span> be loaded into RMDK. <\/span><\/p>\n

 <\/p>\n

T<\/span>he plan still has to be <\/span>agreed by Interserve\u00e2\u20ac\u2122s current shareholder<\/span>s<\/span>, who will lose heavily from the deal, and, Unite understands, Interserve\u00e2\u20ac\u2122s<\/span> individual<\/span> creditors. <\/span><\/p>\n

 <\/p>\n

Pure<\/b><\/i> speculation<\/i><\/b><\/p>\n

Unite assistant general secretary Gail Cartmail said, \u00e2\u20ac\u015b<\/span>It\u00e2\u20ac\u2122s pure speculation at this stage whether an<\/span>y<\/span> plan going forward is viable<\/span>. <\/span>It\u00e2\u20ac\u2122s not really clear who now is the decision maker. <\/span><\/p>\n

 <\/p>\n

\u00e2\u20ac\u015b<\/span>In the meantime there is a serious concern about the 45,000 <\/span>I<\/span>nters<\/span>erve<\/span> employees many of who<\/span>,<\/span> it<\/span> shouldn\u00e2\u20ac\u2122t be <\/span>forgotten<\/span>,<\/span> are delivering critical frontline contracts. They deserve certainty as do the school pupils, <\/span>hospital<\/span> patients and everybody <\/span>else <\/span>receiving services from Interserve<\/span>.\u00e2\u20ac\u0165<\/span><\/p>\n

 <\/p>\n

Cartmail said that if the<\/span> 22 recommendations contained in <\/span>Unite\u00e2\u20ac\u2122s\u00c2\u00a0<\/span>Ending Bandit Capitalism<\/span> blueprint<\/span> were taken up by government the taxpayer, workers and<\/span>\u00c2\u00a0members of the public recieving sevices\u00c2\u00a0would <\/span>be protected<\/span> when firms like Interserve and <\/span>Carillion<\/span><\/a> run into difficulty. <\/span><\/p>\n

 <\/p>\n

She added, \u00e2\u20ac\u015b<\/span>The<\/span> outsourcing<\/span><\/a> model is so <\/span>perilous<\/span> and the checks and balances simply aren\u00e2\u20ac\u2122t in place. Over a year ago we said that Carillion is <\/span>the<\/span> tip of an iceberg<\/span> in respect to outsourcing<\/span> and the government still hasn\u00e2\u20ac\u2122t taken it onboard<\/span>.<\/span>\u00e2\u20ac\u0165<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A plan to rescue to beleaguered public sector outsourcing giant Interserve announced by the firm\u00e2\u20ac\u2122s bosses today (6 January) is not guaranteed to work, Unite has warned.<\/p>\n","protected":false},"author":2,"featured_media":2749,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[855,1072,647],"wps_subtitle":"Interserve rescue deal not guaranteed to work warns Unite","_links":{"self":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17193"}],"collection":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17193"}],"version-history":[{"count":6,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17193\/revisions"}],"predecessor-version":[{"id":25566,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17193\/revisions\/25566"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/media\/2749"}],"wp:attachment":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}