Nationwide Building Society has announced it will now take on 250 former Carillion employees and guarantee the jobs of a further 1,500 workers employed by subcontractors of the collapsed giant.
Last week's collapse of Carillion sparked widespread fear for the jobs of thousands of staff. The construction firm and public-sector contractor employed 20,000 workers in the UK alone.
In a statement, the UK’s largest building society – which already has 18,000 employees – said it would bring all services provided by Carillion in-house. Carillion employees would then become Nationwide employees.
In a pre-prepared statement, Nationwide said: “Our contractors perform a vital and valued role for the Society. During an unsettling time for Carillion employees we felt it was important to provide them with some reassurances. We are today announcing a proposal to bring all services provided directly by Carillion in house, with Carillion employees becoming Nationwide employees from 22 January.”
Earlier, Rebecca Long-Bailey, the Shadow Secretary of State for Business, Energy and Industrial Strategy, told BBC Radio 4’s Today programmes that job losses could be avoided “if the government acts quickly and brings contracts back in-house”.
According to BBC Business Editor Simon Jack, Nationwide will not be the only firm taking on some of Carillion’s former workers.
And, the benefits of giving workers job security are clear – something that Nationwide has done by taking staff in-house.
Writing in Chron, Journalist Ralph Heibutzki noted that that whilst job securiry is becoming increasingly rare “employees who don't fear for their jobs are more likely to perform at a higher level and feel greater commitment to an employer.”