Carillion and libraries

Carillion ran several public library services from October 2013 until the firm collapsed in January 2018. Carillion purchased the libraries services (amongst other things) firm John Laing Intergrated Services (JLIS) as part of a deal with John Laing.  With this purchase, the company became de facto the largest provider of libraries in the country at the time (now surpassed by GLL), controlling the library services of four London authorities (Hounslow, Ealing, Croydon and Harrow). .

The library staff in these authorities found out about the transfer at roughly the same time as the rest of the world, with it being reported that the staff of at least one library service only found out after they noticed their work email addresses had been changed.  The change in ownership was especially noted in Croydon to Laing having only just taken over the service from the council – with it being only their third week of operation.

Outside of libraries, Carillion (along with 44 other companies) has been found accountable for the blacklisting of 14 of its workers for either being trade union members or being active in health and safety.

Within a month of taking over, on 20th November, Carillion put over 100 of their staff “at risk”, with the following announcement:

“Cultural Community Solutions has announced details of proposed library restructure. As a result of significant developments in the way that local library services are now managed, Cultural Community Solutions has today (20^th November) announced proposals for a new integrated staffing structure. This will enable  us to continue to deliver high quality library services across four London boroughs and ensure a sustainable future for the libraries. The proposed changes will take advantage of new technology and ways of working and will focus on streamlining back room functions.

The new structure will protect opening hours and frontline roles as well as creating a number of new positions to focus on the delivery of community outreach and engagement to ensure the library services are accessible to all our communities. Regrettably these proposed changes will put a number of jobs at risk, but we are making every effort to ensure that these losses will be no more than one full time post per library. We will also explore opportunities for redeployment across our wider business. We have now started a period of consultation with all affected staff and their recognised unions.” Carillion press release”

• See this article (March 2014) for a full look at Carillion in Croydon . In it, it is made clear that the library service there is run by a not for profit arm of the company.
• This report on a visit to Croydon Central Library (May 2014) shows a list of problems including a closed main entrance, damaged furniture, understaffing, a dependence on “do not” signs, poor toilets, out of order computers, poor shelving of books and poor display … all indicative of a lack of funding and poor training.
• August 2017 – Carillion lost the Hounslow contract with effect from 1st August 2017
• January 2018 – Harrow recommended Carillion retain contract for further five years. There was a £485k fee to pay to Carillion, writeen into the contract, if it was terminated at this time (halfway point of ten year contract). Ealing Recommended Carillion keeps library contract (£639k penalty if terminated early).
• January 2018 –  Croydon Council to take libraries back in house following the liquidation of Carillion – Croydon Citizen. “Croydon Council has announced today that it intends to terminate its contract with troubled contractor Carillion and will take its libraries back in-house and protect library staff jobs. Government services provider Carillion is to go into liquidation, it stated this morning. The company took over the running of Croydon’s libraries in 2012. Now the council has stepped in to secure the long-term future all of Croydon libraries and guarantee the jobs of library staff. Council officers will be working with libraries today to ensure they remain open.”
  

  “Councillor Tony Newman, leader of the council, said: “The libraries were outsourced by the previous administration, which was something that we didn’t support. I am pleased that we’ve been able to take prompt action to secure the library service and the jobs of library staff. In the year we bid to become London Borough of Culture it is important to ensure libraries are at the heart of all our communities.””

February 2018 – Fake Non-Profits – lies, damned lies and Carillion’s non-profit companies – Ed Mayo’s Blog. “When we look at the accounts submitted to Companies House, the story becomes visible. Cultural Community Solutions made no profit because it looks as if it has paid all of its profit out to others including companies in the Carillion family. From year to year, gross profit is simply eaten up by the ‘administrative expenses’. In 2016, they were exactly the same figure.” … “As a non-profit, they could also do something that other commercial, or indeed in-house services, could not, which is to claim discretionary relief on business rates payable on library premises. As with the big fostercare companies financed by offshore venture capital, designed to escape taxation, the financial profits this non-profit passed through to Carillion were in every possible way a gift from the taxpayer.” … “Anyone can call themselves a non-profit, just as many can claim to be a social enterprise, but there is an underlying first principle that needs to be recognised, as in the International Statement of Co-operative Identity, which is that of independence.”