City Link goes bust

[Taf]

http://www.bbc.co.uk/news/business-30602326

A shame, as they were the only delivery firm that did the job properly for me.

[papa smurf]

they deliver most of the stuff to my office

[denphone]

And there will be many more going the way of the dodo in the coming weeks methinks.

[Mr Angry]

Disappointing for the staff and their families.

The writing was on the wall for years. If I recall correctly the entire business was sold to Better Capital for just £1.00 a year or so ago.

RMT union general secretary Mick Cash told the BBC: "The way it's happened... that on Christmas Day they've done this to our members is disgraceful."

Seriously ? Does he think they went out of business delibetately ?

[Mr Angry]

Originally Posted by Paul M

Seriously ? Does he think they went out of business delibetately ?

You cant call in administrators any other way.

Originally Posted by Paul M

Seriously ? Does he think they went out of business delibetately ?

Maybe the union played a part it its demise.

This was last year


http://postandparcel.info/57756/news...-to-christmas/

[Mr Angry]

More than likely this:

Last month, Better Capital wrote down the value of its £40m investment in City Link by 50% .....".

Originally Posted by Mr Angry

More than likely this:

Last month, Better Capital wrote down the value of its £40m investment in City Link by 50% .....".

In the link it states they were a Perrenial loss maker, yet the union wanted to take them out on strike for more money?

[Osem]

I was only just thinking how nice it was to have had a Christmas without mention of Bob Crow* stirring up trouble and strikes...

Sympathies for those who'll lose jobs but it'll be interesting to find out more about what's been going on.

(PS Yes I do know he's dead - I'm referring to his mention in the article linked to.)

[nomadking]

Originally Posted by Mr Angry

More than likely this:

Last month, Better Capital wrote down the value of its £40m investment in City Link by 50% .....".

That was BECAUSE it was making a loss, not the reason for it.

"The strain of these losses became too great and all but used up Better Capital's £40m investment, which was made in 2013 and intended to help to turn around the company.

Despite the £40m investment, it was still making a loss.

Hunter Kelly, joint administrator to City Link, said: "City Link Limited has incurred substantial losses over several years.
"These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base.

[Russ]

Originally Posted by Top Banana

In the link it states they were a Perrenial loss maker, yet the union wanted to take them out on strike for more money?

Sounds about right for a union.

[Mr Angry]

From the link provided by Top banana;

"Scott Maynard, the City Link human resources director, said his company had been consulting with front line staff since June to make pay and conditions “fairer and more equitable”

“At the moment we are in the position where colleagues doing the same job in the same depot are getting paid different wages. This is a legacy that the current management team has inherited and is one we believe is fundamentally unfair,” said Maynard. “The proposals we have put forward will resolve this while ensuring that the vast majority of colleagues see no reduction in their pay packet or actually get an increase.”

So, no disagreement there.

What happened to Citylink is nothing to do with the actions of unions or union activity. It has everything to do with Better Capital and how, and why, it runs.

[Ignitionnet]

The RMT seem to be in cloud cuckoo land on this one.

I certainly agree the timing was cynical as hell, however I've no idea what they think a 'political and industrial fight' can accomplish in these unfortunate circumstances.

Clearly the owners took the cash from the busiest time of the year and then wound up the company, however this isn't abnormal practice in any company and it's required of them to try and get as much 'value' out of the business as possible.

Sadly this doesn't even come close to coinciding with what's best for the staff, however I have to feel that Mick Cash is blustering away about how he won't tolerate any delay in his demands to talk to a cabinet minister and is playing politics of his own - as he would have to in these circumstances. To do anything less would harm the RMT's reputation.

[Mr Angry]

Originally Posted by Ignitionnet

The RMT seem to be in cloud cuckoo land on this one.

I certainly agree the timing was cynical as hell, however I've no idea what they think a 'political and industrial fight' can accomplish in these unfortunate circumstances.

Clearly the owners took the cash from the busiest time of the year and then wound up the company, however this isn't abnormal practice in any company and it's required of them to try and get as much 'value' out of the business as possible.

Sadly this doesn't even come close to coinciding with what's best for the staff, however I have to feel that Mick Cash is blustering away about how he won't tolerate any delay in his demands to talk to a cabinet minister and is playing politics of his own - as he would have to in these circumstances. To do anything less would harm the RMT's reputation.

This is particularly interesting:

“Not only was it the most brutal and callous way to treat nearly 3,000 staff but RMT believes there may have been more cynical motives behind it, which we want the government to investigate."