Union protests City Link collapse, claims knowledge of “credible” bid for company

Union protests City Link collapse, claims knowledge of “credible” bid for company

The protest comes as more than 2,000 employees are facing redundancy notices today, but rumours of a possible buyer for all or part of the business have been circulating.

City Link went into administration on Christmas Eve, as private equity owners Better Capital decided not to support the company’s continuing losses.

The firm of three hubs, 53 depots and 2,500 vehicles has been loss-making since taking over rival carriers Target Express in 2007. Better Capital bought the firm for a token £1 in April 2013 from services company Rentokil Initial.

The Railway, Maritime and Transport Workers (RMT) union said today that it was aware of a “credible” bid for City Link.

The union’s general secretary, Mick Cash, urged administrators to suspend the redundancy process until viable options for keeping City Link as a going concern are explored.

Cash said today: “Within the past 24 hours RMT has been made aware of what we believe to be a credible bid to take over some or all of the City Link trading operation. At this stage we have no further details and we understand the matter is in the hands of the administrators with the government and [UK business secretary] Vince Cable aware of the situation.”

Union protests are taking place at the City Link hub at Coventry this afternoon, and at other company depots.

Jobs

Meanwhile, more job offers have come forward for City Link employees left out in the cold this winter.

Parcel delivery network APC Overnight has said it will be looking to recruit up to 100 former City Link workers for roles at its national sorting facility at Cannock, Staffordshire.

The company already employs more than 500 people in the West Midlands. It said other jobs could be available across its network of 115 independent depots in the UK.

A recruitment afternoon is to be held next week at the Cannock facility. More details are available by calling 01922 702544.

APC Overnight CEO, Karl Brown, said: “This is an extremely difficult time for City Link staff members and their families. Following discussions with board members we’ve made the decision to prioritise City Link staff for the job vacancies we currently have on offer.

“We’re also making ourselves available to those small and medium sized independent businesses across the UK who have been left without a courier during the busy new year period.”

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