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Wednesday 31st
posted by Peter Lazenby in Britain

Minister rejects RMT ‘rescue summit’ offer

Vince Cable has rejected a union call for a summit to thrash out a rescue plan for scandal-hit parcel delivery firm City Link.

RMT confirmed yesterday that the Business Secretary spoke personally to the union’s general secretary Mick Cash on Monday night when Mr Cash put forward a proposal for a joint summit.

But Mr Cable refused to back the idea for a summit, which would have involved the union, administrators and the government.

“RMT is bitterly disappointed that Vince Cable has rejected that proposal,” said Mr Cash.

“He also made it clear he will not be acting on RMT’s call for direct government intervention, similar to the rescue of the banks, as a way of saving the thousands of jobs caught in the middle of this crisis.”

He said Cable had instead pledged to “actively encourage” other options, and to “remain in direct contact” with the union.

“This is the very least he could do,” said Mr Cash.

City Link announced on Christmas Eve it was going into liquidation with the loss of 2,700 jobs.

Hundreds of small sub-contractors will not be paid and face bankruptcy.

City Link’s tax-dodging parent company Better Capital (BC) will receive £20 million from administrators to repay “loans” made to City Link.

But the taxpayer will pick up the tab for redundancy payments.

“This despicable and callous treatment of an entire workforce by greedy bosses who are able to fold a company on Christmas Day, protect their own money and leave the taxpayer to pick up the redundancy bill exposes the cosy relationship between bandit capitalism and the political elite,” added Mr Cash.

RMT confirmed there will be a major New Year’s Eve protest over the collapse of the company at 3pm in Coventry today.

The protest will be at the City Link Coventry hub, in Siskin Parkway West, Bagington.

Staffordshire-based parcel delivery firm APC Overnight is offering up to 100 jobs to redundant City Link workers.

An online petition calling for nationalisation of City Link is winning thousands of signatures.