City Link Insolvency

EDM number 604 in 2015-16, proposed by Jim Cunningham on 27/10/2015.
Categorised under the topics of Administration of justice, Companies and Insolvency.

That this House notes that three former directors of the courier and logistics firm City Link which collapsed at Christmas 2014 are to be prosecuted for failing to consult with staff and the Government; expresses concern that workers classed as self-employed by City Link, accounting for around 78 per cent of the workforce, are expected to recoup less than 2 per cent of the sums owed; further notes that it is estimated that around £4 million has been paid out of the state's National Insurance Fund to support workers still owed sums; notes that only one director of Better Capital, the company which decided not to continue providing financial support to City Link, is being prosecuted; is concerned about the role of and the high fees charged by the insolvency practitioner; calls on the Government to increase the maximum penalties that directors found guilty of failing to consult with employees and the Government are liable to pay from the current figure of £5,000; and supports the joint recommendation of the Business, Innovation and Skills and Scottish Affairs Committees for stronger legislation to protect workers in these circumstances.

This motion has been signed by a total of 15 MPs.