City Link announces ‘disgraceful’ Christmas day job losses

Department store John Lewis has transferred all its business with City Link to other carriers after the delivery firm said its 2,727 employees could lose their jobs after revealing it had fallen into administration.

The RMT union demanded “urgent talks” with Business Secretary Vince Cable after the company’s “substantial losses” over several years were disclosed.

The union said it had been told on Christmas Eve the company was in administration, and that the timing of the announcement “stinks to high heaven”.

Neither the Coventry firm or their administrators, Ernst & Young, would confirm the information until Christmas day.

The company expects numerous jobs will be cut after failing to find a buyer to bail it out.

‘Cynical motives’

Mick Cash, General Secretary of the RMT, said: “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.

“The disgraceful timing of the City Link announcement at the start of the festive season must not be allowed to delay and hamper efforts to rescue the jobs.”

City Link operations have been suspended at all depots until Monday, when people expecting deliveries can collect their parcels.

The courier group was bought by venture capitalist Jon Moulton in April 2013 for £1 from previous owner Rentokil, the pest control firm.

Several staff will be kept on to help wind down the company.