Public spending cuts are yet to take effect but are still causing company fear and problems already as adjustments are made in anticipation of the changes due to occur. The latest victim is UK employment as the Connaught Partnerships Ltd. has released another 700 workers. The workers lost their jobs less than a week after the social housing repair and maintenance company Connaught was put into administration. A previous 700 workers had already been released, making a total of 1,400 of the 4,200 workforce at Connaught now unemployed.
There was hope that 600 of the previously released 700 workers would be rehired by rival company Mears which received a transfer of eight contracts originally held by Connaught.
Administrator KPMG partner Brian Green said that they had now “transferred the vast majority of Connaught’s contracts to new providers, safeguarding the majority of jobs and ensuring continuity of service for tenants. Unfortunately [many] staff were made redundant as part of the administration but we are hopeful that some of these staff will be re-employed by Mears”.
Over 2500 jobs were saved in a deal that sold the majority of contracts to Lovells, the social housing wing of the Morgan Sindall building firm.
Connaught filed for administration last week after failing to find further bank funding. They currently hold 220 million pounds in bank debt and owe 40 million to suppliers and contractors. The company came under pressure with proposed government spending cuts to social housing projects. Connaught’s separate environmental and compliance units are not in administration and are trading as usual.