Key public sector Carillion contracts awarded to Canadian firm

Canadian firm BGIS is to take over hospital, education, justice, transport and emergency services contracts from collapsed construction giant Carillion.

Brookfield Global Integrated Solutions, which describes itself as a global real estate and facility management services provider, said that as part of the deal, it will take on more than 2,500 Carillion employees.

Carillion’s liquidation last month left in its wake a £900 million debt pile, a £590 million pension deficit and hundreds of millions of pounds in unfinished public contracts.

It is unclear how much the BGIS deal is worth, but it is thought that staff working on the transferred contracts will keep the same terms and conditions of employment.

BGIS boss Gord Hicks said: “This deal provides continuity of services for a large number of customers providing critical infrastructure within the UK Market.

“Our team is looking forward to engaging both customers and employees in the days ahead to effect the transaction and ensure a smooth transition.”

The deal is expected to close in the first quarter of 2018.

PwC is handling Carillion’s liquidation, which has so far seen nearly 1,000 jobs lost out of the previous directly-employed workforce of 18,000.

Mark Marquis, BGIS chief commercial officer, added: “BGIS has a long-established track record of serving federal and regional government as well as large corporate clients and onboarding complex, multi-site contracts around the world.

“With this transaction, we look forward to building a large presence in the UK facilities management market and providing customers with the same industry leading service and capabilities that we do throughout the globe.”

Toronto headquartered BGIS, a subsidiary of Brookfield Business Partners, provides what it calls “integrated facility management services” and employs 7,000 globally across North America, Europe, the Middle East, Australia, New Zealand and Asia.

Earlier on Wednesday, outsourcing giant Serco said that it has secured a hefty discount on its deal to buy a raft of healthcare contracts from Carillion.

Serco said it would now pay £29.7 million – down from the £47.7 million price first agreed in December, before Carillion’s dramatic collapse into liquidation.

The fallout from Carillion’s collapse has seen former bosses branded “delusional” and accused of playing the blame game by MPs, while Britain’s big four accountancy firms have been savaged by for “feasting” on the firm’s carcass.

Gail Cartmail, assistant general secretary if Unite, said: “Of course the saving of 2,500 jobs has to be welcomed.

“Workers who have lived with weeks of uncertainty will breathe a sigh of relief.

“We will look to meet immediately with BGIS to ensure that workers are not being transferred to lesser contracts and lesser pay.

“But the Government must not see this as an opportunity to ‘move along’.

“There are serious issues about out-sourcing, especially in the public services, which need serious examination.

“Cut-price contracts, low wages, insecure working and boardroom behaviour more usually seen in a casino; these should have no place in our schools, hospitals and services.

“That is why Unite urges the Government to learn the lessons of the Carillion collapse.  This will only be achieved with a full inquiry into the eventual failure of the business.

“The Government should not seek to avoid this because their duty first and foremost is to us, the taxpayers.”