Legal action over Connaught collapse

A STRING of companies are facing legal action over the collapse of Connaught.

The GMB union is threatening to pursue cases against Keir, Lovell, KPMG and Hull City Council contractor KWL through employment tribunals.

Keir and KWL have said they are working with Hull City Council to bring the dispute to a swift conclusion while KPMG has vigorously defended its actions as key to saving the jobs of the majority of Connaught staff.

The GMB action relates to the collapse of social housing firm Connaught last September which saw KPMG appointed as administrators.

Hull City Council transferred a maintenance Connaught contract to Lovell before later splitting it between Kier and KWL.

The GMB is asking an employment tribunal to take action on behalf of 129 former Connaught workers on the grounds of unlawful deduction of wages, unfair dismissal and a failure to properly consult.

In a statement, KPMG said: “We haven’t received any approach from the GMB on legal proceedings with regard to former Connaught employees but we will of course co-operate fully with any employee tribunal. 

“Companies, like Connaught, which sell business support services, quickly lose their value once they go into administration as their customers seek to find alternative suppliers. 

“Selling the vast majority of contracts within 48 hours of our appointment safeguarded the jobs of the majority of staff who worked for Connaught.”