Labour Research November 2019

News

Ministers criticised over firm’s collapse

Unions have accused the government of washing its hands of travel firm Thomas Cook by failing to intercede in the weeks prior to the company entering compulsory liquidation in September, putting 9,000 jobs in Britain at risk.


News emerged that transport secretary Grant Shapps barred the directors of Thomas Cook from speaking to government ministers in the fortnight before its collapse. And UK ministers subsequently rejected an attempt to secure a rescue deal that would have addressed the business’s £200 million debt shortfall.


Oliver Richardson, Unite union national officer for civil aviation, said: “While other governments throughout Europe were prepared to support parts of the Thomas Cook business and to seek to alleviate the damage faced by their tourism and transport industries, our government had installed barriers to prevent direct meetings.”


The TSSA union, which represents Thomas Cook’s retail and head office staff, was also damning about the lack of role played by business secretary Andrea Leadsom. General secretary Manuel Cortes said: “We can’t have a business secretary that doesn’t bat for Britain, doesn’t lift a finger when 9,000 jobs are on the line.”


Both unions welcomed the announcement that all Thomas Cook shops are to be bought by rival company Hays Travel. The move could possibly save 2,500 jobs.

https://unitetheunion.org/news-events/news/2019/october/government-ministers-revealed-to-have-washed-hands-of-thomas-cook-prior-to-company-collapse

https://www.tssa.org.uk/en/Your-union/Your-company/company-headlines.cfm/leadsom-s-position-totally-untenable-over-thomas-cook-collapse