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Cleshar Contract Services to replace Carillion on London Overground project
Image courtesy of TfL

Cleshar Contract Services to replace Carillion on London Overground project

Cleshar Contract Services Ltd has been appointed for maintenance work on the East London Line of the London Overground.

The construction and infrastructure services company is vastly experienced in quality track work and Transport for London (TfL) has announced the appointment, with Cleshar taking over from Carillion.

It is further fallout from the liquidation of Carillion, which was announced in mid-January following months of uncertainty.

Subject to a 10-day standstill period, the contract will start on 1 April 2018.

The announcement follows other instances were Carillion contracts have been taken up by other contractors; Kier has recently resolved issues on its joint venture contracts with the fallen company so that HS2 and road projects continue.

Cleshar, like Kier, has taken on a Carillion contract on the basis that the employees who were working on those contracts, will be transferred over to Cleshar with all terms and conditions protected.

On that point, TfL has confirmed that the handover has been approached on the basis that the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), will also apply to the transfer of staff.

Until the start of the new contract in April, TfL is working with PwC – appointed to assist Carillion’s liquidation – to finalise agreement so that Carillion fulfils its East London maintenance contract.

This will also give employees some guarantees about continued work and payment until the new contract takes hold in April.

TfL’s Director for Rail and Sponsored Services is Jonathan Fox. He praised the professionalism of employees at such a difficult time.

“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.”

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