Unions demand meeting with Gauke to discuss Interserve finances

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Unions demand meeting with Gauke to discuss Interserve finances

Following news of Interserve’s share prices plummeting by 80%, probation unions Napo, Unison and GMB have requested an urgent meeting with justice secretary David Gauke to discuss the impact this could have on the five Interserve Justice Community Rehabilitation Companies.

In the letter dated 12 December, the unions expressed  considerable concern for members who fear for the future of their jobs as Interserve seemingly teeters on the edge of collapse.

Unions told Gauke: “As the MoJ has contractual oversight and responsibility for the CRC contracts we write to ask that you give urgent priority to arranging a meeting with us to discuss the following:

  • What protections are in place to ring fence and protect the MoJ finance already invested in the CRCs, if Interserve goes into administration?
  • If Interserve default on their bank loan and go into administration the unions assume that the company’s CRCs would be brought back into public ownership, as was the case between 1 June 2014 and 1 February 2015.
  • What reassurances can you provide our CRC members that in the longer term their jobs will be safe, should Interserve go bust?
  • Has the MoJ given Interserve permission to undertake staffing changes, given that these clearly change the business model on which the current contracts were predicated?
  • What contingency plans are you putting in place for Authority ‘Step In’ in a possible emergency over the Interserve financial crisis, as provided for in the ‘Amended and Restated Services Agreement’?”

You can read the letter in full here


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