McAlpine to furlough most of 2,000 workforce

Grant Prior 5 years ago
Share

Sir Robert McAlpine is furloughing most of its 2,000 staff to prevent it running out of cash during the Covid-19 crisis.

Staff were sent an email from the Executive Board yesterday outlining the contractor’s plans in the wake of the decision to shut most of its sites last week.

The message said: “As your Executive Board we are clear that our priority is to look after our people and their future prospects as best we can and to do this we need to protect the business and its long-term viability.

“Many of our projects are currently closed because we don’t feel we can operate in accordance with the Construction Leadership Council’s guidelines, which are focussed on keeping people safe.

“However, we are reviewing each project to see what meaningful activities we can undertake and action daily.

“With many of our sites now shut or on limited activities, the business is generating significantly less income.

“This means that despite our previously strong cash position, if we don’t act quickly, we will run out of cash before this pandemic is over, putting our business at risk.

“Our aim is to ensure jobs are preserved in the long term, and as a business employing nearly 2,000 people, our biggest cost is our salary bill.

“As a result, it is with very heavy hearts that the Partners and Executive Board have agreed that in order to protect jobs in the long term we will need to use the help available to us through the Government’s Coronavirus Job Retention Scheme (CJRS).”

The scheme pays furloughed workers 80% of their wages up to a maximum of £2,500 a month.

The email continued: “This is the best opportunity we have to protect jobs and the business.

“As such, aside from the people we will need to remain active in post or ‘retained’ during this crisis, all remaining roles in the business will be furloughed.

“We know this is painful and not what anyone wants to hear, but the more decisively we act now, the better the outcome for the business and its people in the long-term.”

People retained as active workers in the business will be asked to take a 20% pay cut while the Executive Board and Senior Leadership Team will take a 40% pay cut.

Staff will be told whether they will be retained or furloughed by next Monday.

McAlpine added: “The Covid-19 situation changes rapidly and please rest assured that we will be making decisions quickly and endeavouring to reopen sites as soon as it is safe to do so.

“Our aim is to get as many of you as possible back working full-time as soon as we can.

“We will be reviewing all decisions relating to furlough and pay on a month by month basis and as soon as we can open our sites and return to fully operational status, we will.”

Another earlier internal email from chairman Edward McAlpine, also seen by the Enquirer, said: “Our goal is to ensure that we manage the business in a way that we come out the other side of this storm and continue trading.

“To that end, we will be asking each and every one of you to join us in making exceptional and difficult decisions.

“The thoughts of the McAlpine family are with you and your loved ones at this very difficult time. God bless you, please stay safe and look after each other.”

Latest news

Construction T Level scrapped due to lack of demand

Courses canned after less than 100 sign-up for latest round
4 hours ago

Bid rigging probe launched into school repair work

Firms raided this week with focus on roofing contracts
1 day ago

McLaren hires ex-ISG regional boss for north east expansion

Andrew Beaumont becomes MD of new Yorkshire and North East business
13 hours ago

Government commits to four new prisons in seven years

£2.3bn pledged for new prison build programme
1 day ago

Road and rail delays hit revenue at Van Elle

Turnover drops 5% as markets remain challenging for piling specialist
12 hours ago

Boot reports ‘noticeable improvement’ in planning system

Government planning reforms already unblocking council planning
12 hours ago

Go-ahead to revamp former London city hall

Project will straighten the building's leaning profile with terraces to every level
20 hours ago

United Living to divert Midlands gas pipeline

600m pipeline diversion clears way for M54 to M6 link road construction
11 hours ago

Credit insurance saves Billington from ISG hit

Steel specialist puts on extra shifts at its plants to cope with demand
2 days ago

M&E specialist Dodd doubles profit on retrofit surge

Family-owned Telford specialist delivers record revenue of nearly £250m
1 day ago

Go-ahead for 800-home Croydon dual towers

One Lansdowne Road build to rent scheme to cost £260m to build
2 days ago

Construction inflation set to return raising tender prices

End of 2024 to mark the bottom of present inflationary trough
2 days ago

Start date for vast Balfour and Costain carbon capture power job

£4bn Teesside project to start construction next year creating 3,000 jobs
2 days ago

Plans go in to start revamp of North Finchley town centre

Developer Regal unveils first details of Barnet masterplan
2 days ago

Glencar bags £18m Big Yellow London store

Six-storey stoarage centre to be built at Staples Corner
1 day ago

Plan unveiled for 31-storey London Fenchurch Street tower

Demolition work to start in 2026 for new office tower
3 days ago

Vinci Building buys tower cranes for first time

Contractor invests in two WOLFFKRAN all-electric cranes at £138m Sheffield site
3 days ago

30 local firms land United Utilities £500m framework

Minor works deal win for North West civils and M&E specialists
3 days ago

Restructure pays off as Higgins returns to profit

Housing contractor recovers from £25.9m loss last year
3 days ago

Former Heathrow boss joins Mace in board rejig

Firm completes string NED appointments to expanded group board
3 days ago

Planning officers to get powers to bypass committee stage for housing

Rayner reform plan to cut out local council planning committees
3 days ago

National Insurance hike to delay construction recovery

Arcadis paints varied picture with full recovery delayed until 2026
4 days ago

Gratte Bros rides out cost rises with profit increase

M&E specialist warns of further upward pressure on wage costs
3 days ago

Sellar’s 36-storey London City office tower approved

Demolition work to start in 2026 at 60 Gracechurch Street site
5 days ago

Roofers caught using phone lights to work at night

Roofing boss handed suspended prison sentence for lack of edge protection
4 days ago

£380m North West housing framework out for bid

St Helens-based Torus aims to build 9,000 homes by 2029
4 days ago

Historic property magazine to close

Estates Gazette has been in business since 1858
6 days ago

M&S Marble Arch rebuild approved after three-year planning fight

Plans were delayed when Michael Gove backed carbon campaigners
1 week ago

£191m revamp funding approved for London Barbican Centre

Construction to start in 2027 on five-year programme
7 days ago

RED Construction tops £100m turnover

Builder maintains profit margin at 1.7% as business nearly doubles in size
7 days ago

Contractor services