Union officials claim a dozen employees from the collapsed maintenance firm were dismissed without notice.
Following months in limbo, about 120 workers were transferred to two other companies with maintenance contracts with Hull City Council.
Construction union Ucatt is representing four workers not taken on by either council-owned KWL or Kier who are planning to lodge tribunal claims against the council.
Father-of-two Lance Harrison, 46, of Sutton Park, has been left struggling to pay the mortgage for a new house.
The bricklayer and plasterer, who worked for Connaught for four years, told the Hull Daily Mail: “I went along for an induction at KWL, was given my worker’s number and believed I was being taken on.
“So I took out a mortgage and a week later, I received a letter to say I had no job.
“I’ve used up all my savings now and been left in the lurch. It is very stressful.”
Joiner Nicholas Spenceley, 49, of Shropshire Close, west Hull, said he feels let down by the council, which employed him directly for ten years before being transferred to Connaught three years ago.
He said: “Legally, I am entitled to notice and to redundancy pay.
“I have a mortgage and my savings are running out.
“Ultimately, the council could have sorted this mess out a lot quicker and more efficiently.”
Danny McCartney, 32, of east Hull, is a former maintenance joiner who was employed by the council in 2005 and transferred to Connaught in 2009.
He said: “We were told everything would be fine, they said go ahead and book that holiday.
“Now, I’ve been left with no redundancy and a mortgage and loans to pay.”
Workers were thrown into limbo after Connaught went into administration last September.
The authority initially awarded the work to Lovell Respond, but made a U-turn following legal wrangles.
Last December, the council’s cabinet decided to split the contract between KWL and Kier.
Lovell had paid all the staff wages during the three- month saga, spending just over £1m even though no work was actually carried out. It officially stopped the payments on January 12.
Now, KWL has begun a redundancy consultation process with 69 employees and Kier with 17, following the completion of the council’s Decent Homes scheme.
GMB union organiser Shaun Clarkson said: “We’ve spent months protesting outside the Guildhall while workers were in limbo.
“The council is to blame for this debacle.”
A spokesman for the council declined to comment.