Transport for London has announced that it will appoint Cleshar Contract Services Ltd. to take over maintenance work on London Overground’s East London Line.
The contract has been awarded on the basis that existing Carillion employees will transfer to Cleshar Contract Services with their terms and conditions protected.
The new contract is subject to a 10-day standstill period, and will commence from 1 April 2018.
In the meantime, TfL is working with PwC, which has been appointed to assist the liquidator of Carillion Construction Ltd, to finalise an agreement that will enable Carillion to continue to fulfil the East London line maintenance contract.
The agreement will give guarantees to support Carillion employees’ continued work and payment until the new contractor takes over, as well as ensuring that services between Highbury & Islington and New Cross Gate continue to operate as normal.
Jonathan Fox, TfL’s director for rail and sponsored services, said: “I would like to give my sincere thanks for the continued commitment and professionalism of all employees during this uncertain time and am delighted that we will be able to secure a way forward for this contract and the Carillion staff affected.
“I hope this will provide reassurance to our hardworking staff and our customers on the East London Line.”
Source: Rail Technology Magazine