Labour demand probe into City Link collapse

[TrueBlueTerrier]

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Labour demand probe into City Link collapse after ''appalling'' treatment of staff

Shadow Business Secretary Chuka Umunna slammed the firm after thousands discovered they faced the sack from media reports and union emails on Christmas Day

Labour today called for an official inquiry into the collapse of parcel carrier City Link.

Chuka Umunna slammed the “appalling” treatment of staff who discovered they faced the sack from media reports and union emails on Christmas Day.

The Shadow Business Secretary demanded a “full and proper inquiry”.

He said: “Those who have lost their jobs and contractors who are owed money deserve nothing less.”

Vince Cable said the firm must “answer for its behaviour” after heartless bosses put thousands of workers on redundancy notice at Christmas.

The Minister said an inquiry will be needed if allegations of “serious misconduct” emerge.

Speaking in the Commons, Umunna drew parallels with the collapse of electronics giant Comet in 2012.

Mr Umunna raged: “To hear your job has been put at risk of redundancy not from your employer, but while watching the television news with your family on Christmas Day, is an utterly appalling way to be treated.”

City Link was owned by a mega-rich City investment fund run by fatcat Tory donor Jon Moulton.

Mr Moulton claimed the parcel carrier was no longer viable and that he had no choice but to pull the plug.


But it has since emerged his firm Better Capital hopes to recoup £10million from the stricken company - while taxpayers are left to pick up the redundancy bill.

Mr Umunna said there were many “unanswered questions” about the way the collapse was handled.

“The entire affair stinks,” he blasted.

“Given the numbers involved and the public interest in the administration, will the Secretary of State commit to conducting a full and proper inquiry into the matter, as he did with Comet?

“Those who have lost their jobs and contractors who are owed money deserve nothing less.”

Mr Cable described the firm’s collapse as “sad and dispiriting” and confirmed an inquiry could be launched once administrators have filed their official report.

He told MPs: “The difference with the Comet case is the allegation of serious misconduct by directors, and that may or may not be the case with City Link.

“The administrator will make a report to our Insolvency Service and, depending on what that says, we may want to initiate an investigation. But let us wait and see the findings of that.”

The Department for Business said the administrator is expected to report back in six months.

Mick Cash, general secretary of the RMT union, fumed: “Once again this is too little, too late from Vince Cable.

“The Government needs to act now to find out what was going on in the run-up to the City Link collapse and they need to move to stop other speculators from hanging their workforce out to dry in this callous way.”

[Lounge Lizard]

So what will an inquiry prove ?
That City Link was losing money and so went out of business.

[clashcityrocker]

So what will an inquiry prove ?

If they'd been privatised like us then they could have accessed capital and all the workers would have got 700 free shares.

[Lounge Lizard]

So what will an inquiry prove ?

If they'd been privatised like us then they could have accessed capital and all the workers would have got 700 free shares.

- and if they'd had quality DOMs like us.