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Aberdeen City Link workers could lose jobs on Hogmanay

Jon Moulton, the founder of City Link's parent company Better Capital, has denied the firm's collapse was mishandled and apologised to more than 2,000 workers who found out on Christmas Day that they would lose their jobs.
Jon Moulton, the founder of City Link's parent company Better Capital, has denied the firm's collapse was mishandled and apologised to more than 2,000 workers who found out on Christmas Day that they would lose their jobs.

Staff returning to work at Aberdeen’s City Link depot for the first time since news of the company’s collapse broke on Christmas Day fear they could lose their jobs on New Year’s Eve.

A total of 19 members of staff are based at the firm’s centre in Altens, but more than 50, including agency and self-employed drivers, had been working there in the run up to Christmas.

Yesterday administrator Ernst & Young (EY) announced that since the company was not able to continue trading, “substantial redundancies” among the 2,727-strong nationwide workforce would take effect from Wednesday.

One source said Aberdeen staff had yet to be informed of their leaving date and were “disgusted” at the way they had been treated.

He added: “The workers only found out about this from the news on Christmas Day.

“Then they got an email from the company on Boxing Day.

“It is not even that they feel let down, they are disgusted and devastated.

“Some of them have worked for the company for years. It is a very loyal workforce in Aberdeen.

“The worst thing about it is how hard everyone worked in the run up to Christmas.”

Some workers will be kept on to help return the estimated 40,000 parcels remaining in City Link’s depots across the UK.

Protests by staff and RMT union members yesterday took place outside a number of City Link depots, including at Motherwell in North Lanarkshire.

The RMT union has accused City Link’s bosses of a “horrific catalogue of mismanagement”, particularly as many workers found out on Christmas Day that they were about to lose their jobs.

RMT general secretary Mick Cash has written to business secretary Vince Cable demanding a summit between the administrators, the union and the Government to explore options to save the company.

However, the founder of City Link’s parent company has denied the firm’s collapse was mishandled.

Jon Moulton, of investment business Better Capital, said its administration was handled in the best way possible and that delaying the closure of City Link over Christmas had not been an option, as trading while insolvent was a criminal offence.

“We’re very sorry about the failure of City Link and we’re very sorry about the horrible effects that will follow for the workforce and contractors,” he said.