Seventy-four people in Morley are facing redundancy after their courier firm employers went into administration on Christmas Eve.
City Link, whose Morley base is on Bruntcliffe Avenue, has been criticised for the timing of the announcement after reports suggested some employees found out their jobs had been axed via social media on Christmas Day.
The firm has its base in Coventry and employs around 2,700 people at 52 depots across the country. Most of those jobs are due to cease after today. The company has been placed in the hands of accountancy firm Ernst and Young who said that there would be a further update on the future of City Link after the “unfortunate” redundancies had been completed.
A statement from the joint administrators said: “The Joint Administrators of City Link Ltd have begun directly informing the company’s employees on the administration and the potential for significant redundancies through a series of employee meetings across the City Link sites. We believe that the company will unfortunately have to make substantial redundancies, which will take effect on December 31, as a result of the company being unable to continue trading and accept further parcels.
“Employees that are affected by redundancy will be offered appropriate advice and support. Employees that are not immediately affected will continue to be employed, and paid, to help return the estimated 40,000 parcels remaining in City Link’s depots to customers and intended recipients, as well as assist in realising the company’s assets and winding down its operations.”
The RMT union has called for an urgent meeting with Business Secretary Vince Cable to see if the company can be saved.
Morley MP Ed Balls said the news was devastating.
He said: “At the moment it is totally unclear is why things were allowed to reach this point without staff being aware of the problems the company was having. I have written to the company to find out what more can be done to safeguard jobs both here in Morley and across the country.”