Tram workers in walk-out threat over wages wrangle

Published on Friday 21 November 2008 08:55

WORKERS on Edinburgh's trams project have threatened to down tools and walk off site because they haven't been paid for weeks.

Carillion, the company responsible for moving underground services in preparation for the laying of tram tracks, has reportedly not paid wages due to a number of its subcontractors, citing "contractual matters".

One worker told the Evening News: "We are just concerned now about whether we are going to get paid."

Another said: "I think Carillion is in serious financial difficulties. All the work has come to a standstill on Leith Walk. Some subcontractors have not been paid for three weeks."

The manager of one company which has threatened to pull out of the job next week if it is not paid said: "We have got one vehicle and driver on hire to them at the moment. We are due money from Carillion and they are not forthcoming with it.

"There are a few of us in the same boat. We have dealt with Carillion before and never had any problems so I don't know if it is just an issue with funding for this project."

However, John Denning, Carillion's director of corporate affairs, has reportedly said the payment problems were down to "contractual matters" and denied that the company was in any financial difficulty.

Mr Denning reportedly said: "The payment issues are very small and are driven by contractual matters, which are commercially confidential and we don't comment on them.

"These sorts of matters are not out of the ordinary.

"Carillion has an extremely strong balance sheet and within the context of Carillion, whilst this is a very important contract, it is also relatively small."

It is thought that some subcontractors are struggling because banks will no longer lend them money to cover periods when payment is withheld during contractual difficulties or work delays.

A spokesman for tram company TIE said the firm could not comment as Carillion was responsible for employing and managing its own subcontractors.

The news comes after the Evening News revealed yesterday that the 87 million tram extension from Roseburn to Granton is set to be scrapped due to the economic downturn and rising costs.

Council sources say that the financial climate, coupled with the fears of an overrun on the 512m budget for the main tramline, meant line 1b was a "non-starter".

Councillors have yet to make a formal decision on the extension, but are understood to have met with Edinburgh's chief executive Tom Aitchison to be told they would have to make up their minds by the start of December.