{"id":17622,"date":"2019-03-15T16:15:14","date_gmt":"2019-03-15T16:15:14","guid":{"rendered":"http:\/\/unitelive.org\/?p=17622"},"modified":"2020-11-12T12:57:09","modified_gmt":"2020-11-12T12:57:09","slug":"interserve-goes-into-administration","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=17622","title":{"rendered":"Bandit capitalism strikes again"},"content":{"rendered":"
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Outsourcing giant Interserve has gone into administration but will continue trading following the rejection of a controversial rescue package by its shareholders today (March 15).<\/p>\n

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Coming a year after Carillion\u00e2\u20ac\u2122s collapse, the administration of Interserve \u00e2\u20ac\u201c which holds contracts for cleaning schools and hospitals, provides probation services and builds roads and infrastructure \u00e2\u20ac\u201c is yet more evidence of the damaging impact outsourcing<\/a> has on public services.<\/p>\n

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Unite is demanding an urgent meeting with the administrators, Ernst & Young, over the future of Interserve<\/a> staff, who have been told to continue to work normally unless instructed otherwise.<\/p>\n

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The union, which has 1,700 members at the firm, said it expects to be fully consulted on any potential transfers of staff to new companies.<\/p>\n

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Despite thousands of government contracts for public services and an extensive construction sector, serious mismanagement by its leadership resulted in Interserve accruing a \u00c2\u0141681m debt mountain.<\/p>\n

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By rejecting a plan by banks and hedge funds to cancel \u00c2\u0141485m of the debt in return for a 95 per cent ownership of the business that would have wiped out the value of their investments, shareholders today forced the company into administration.<\/p>\n

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As a result, Interserve\u00e2\u20ac\u2122s 45,000 UK employees are now facing an uncertain future.<\/p>\n

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Unite national officer Colenzo Jarrett-Thorpe said Interserve\u00e2\u20ac\u2122s workers are \u00e2\u20ac\u015binnocent victims\u00e2\u20ac\u0165 and blamed a culture of greed and incompetence amongst the company\u00e2\u20ac\u2122s senior management for the scandal.<\/p>\n

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\u00e2\u20ac\u015bInterserve\u00e2\u20ac\u2122s management has portrayed this as business as normal but this is anything but normal. Workers are being asked to deliver vital public services without knowing who their employer will be and whether they will continue to have a job in the future,\u00e2\u20ac\u0165 Jarrett-Thorpe.<\/p>\n

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\u00e2\u20ac\u015bThe government must step in and ensure that services continue and that workers are treated with dignity and respect. Once again we have seen the government\u00e2\u20ac\u2122s outsourced model fail.<\/p>\n

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\u00e2\u20ac\u015bIt is essential that the administrators meet with Unite at the earliest possible opportunity and clarify what is in prospect for the workforce, a failure to do so would be crass, insensitive and deeply disrespectful to the workforce.\u00e2\u20ac\u0165<\/p>\n

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Following the collapse of Carillion<\/a> last year, Unite has been warning that similar corporate collapses were inevitable without government action.<\/p>\n

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However the government has largely rejected any proposals for reform and continued as though it was business as usual.<\/p>\n

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Unite has produced a report \u00e2\u20ac\u201c Ending Bandit Capitalism: Learning the lessons following Carillion\u00e2\u20ac\u2122s collapse<\/a> \u00e2\u20ac\u201c that contains 22 recommendations on how to reform the economy.<\/p>\n

 <\/p>\n

Jarrett-Thorpe said, \u00e2\u20ac\u015bInterserve is the latest example of bandit capitalism and this demonstrates that the government\u00e2\u20ac\u2122s outsourcing business model is smashed beyond repair.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThe government has been asleep at the wheel since Carillion\u00e2\u20ac\u2122s collapse last year and if no action is taken we face further corporate collapses.\u00e2\u20ac\u0165<\/p>\n","protected":false},"excerpt":{"rendered":"

Outsourcing giant Interserve has gone into administration but will continue trading following the rejection of a controversial rescue package by its shareholders today (March 15).   Coming a year after Carillion\u00e2\u20ac\u2122s collapse, the administration of Interserve \u00e2\u20ac\u201c which holds contracts for cleaning schools and hospitals, provides probation services and builds roads and infrastructure \u00e2\u20ac\u201c is […]<\/p>\n","protected":false},"author":2,"featured_media":6673,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1088,167,1072],"wps_subtitle":"Outsourcing giant Interserve has gone into administration","_links":{"self":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17622"}],"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=17622"}],"version-history":[{"count":2,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17622\/revisions"}],"predecessor-version":[{"id":25430,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17622\/revisions\/25430"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/media\/6673"}],"wp:attachment":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}