Minister meets former Carillion AWPR workers as more subsidiaries liquidated

Economy, jobs and fair work secretary, Keith Brown, has assured former Carillion employees working on the Aberdeen Bypass project that they are being supported by the Scottish Government.

A joint venture between Balfour Beatty, Galliford Try and Carillion (Aberdeen Roads Limited) was awarded the contract to build the £745 million Aberdeen Western Peripheral Route/Balmedie to Tipperty (AWPR/B-T) project in December 2014.

However, following the collapse of Carillion last month, both Galliford Try and Balfour Beatty have been left to shoulder the remaining costs on the scheme.



Last week Galliford Try said it has booked a £25m exceptional charge for the six months to December 31 as a result and announced plans to raise £150 million of new equity capital to help cover its additional financial obligations on the contract.

Speaking after a visit to project site on Friday, Mr Brown said he has been in regular discussions with trade unions, the UK government and other key partners regarding Carillion.

“I have endeavoured to keep Parliament informed via statements to the chamber, press statements and committee appearances, as well as correspondence,” he said.

“It was important to visit the project today and give site representatives some assurances about the next few months, as it has been a worrying time.



“It is just as important for my officials and Aberdeen Roads Limited to take the time to calculate the implications of this situation and consider what action should be taken to mitigate any knock-on consequences.”

During his visit, Mr Brown met with workers and a representative from Aberdeen Roads Limited, as well as inspecting the 270-metre long River Dee Crossing.

He also reiterated that Balfour Beatty and Galliford Try have made offers of employment to former Carillion workers on the project where there is a position available. To date, around 90% of former Carillion employees have transferred over to the two firms, who have also committed towards fulfilling their obligations on the project.

The minister said: “This is an exciting phase of the project. There is clearly much still to do, and weather will play a part in the final opening date, but it feels like the beginning of the home run towards completion.



“More details of the various milestones and key dates will be revealed in the weeks ahead, but I’m sure the community and workforce will play a pivotal role in the opening celebrations – and both groups are at the forefront of our thinking and initial planning.”

Meanwhile, ten more Carillion subsidiaries have joined the raft of firms to have been put into liquidation following the contractor’s demise.

On February 16 Carillion Property Services, Carillion Professional Services, Dudley Bower Group and Schal International among others were placed in the hands of the Official Receiver and its special managers from PwC.

To date, 6,668 Carillion jobs have been saved and 989 jobs have been made redundant through the liquidation.

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