Just over 150 workers at Fountains Group have been made redundant.
UPDATE: More than 150 workers lose their jobs at Norwich City Council contractors Fountains
by RICHARD WHEELER and DAN GRIMMER
Monday, January 23, 2012
4:19 PM
Up to two hundred Norwich workers have been made redundant from city council contractor Fountains.
Workers for Fountains were summoned to its headquarters in Whiffler Road, Mile Cross, at 12.30pm today where they were told they had been made redundant.
The environmental management company, formerly known as Connaught Environmental Services, had a £4.6m a year contract with the city council to collect waste, clean streets and to maintain parks.
But the entire workforce were told they were being laid off, with administrators BDO called in to the company and jobs advice being offered to the people who have lost their jobs.
BDO has secured a sale of the majority of the contracts and assets to OCS Group, with 1,570 Fountains Group workers moving across.
But the Norwich contract was not transferred, so 153 workers have lost their jobs. A further 293 other Fountains Group redundancies have been made in other parts of the country.
Tony Nygate, BDO business restructuring partner, said: “We are pleased to have concluded the sale of the business to OCS Group, preserving more than 1,570 jobs.
“A sale of Fountains Group was the best option to secure the future of the business, which has been exposed to the difficult economic climate.
“Today’s announcement enables the business to move forward confidently and on a secure financial footing.”
Fountains also has a £3.3m sub-contract to collect rubbish and recycling from thousands of households across Norwich, which it sub-lets to waste management business Biffa.
That contract involves about 60 jobs and the likelihood is that the council will seek to award an emergency contract to Biffa to ensure that work continues.
City council bosses said they have been in talks with Biffa, Fountains Group and the administrators about how to ensure people’s bins are still emptied this week.
Alan Waters, cabinet member for resources at Norwich City Council, said: “Our absolute priority is that we continue to provide the waste and recycling collections and other important services to our residents.
“As soon as we were told, we went into immediate discussions about how to maintain the waste and recycling contract with Biffa so that people’s bins continue to be emptied and their recycling collected.
“We also focused on how to deliver the services Fountains has been providing, such as street cleaning, tree management and grounds maintenance at parks, cemeteries and open spaces in the city.
“We have already spoken to the administrator as a matter of urgency to discuss the continuation of these contracts and what we can do to try and protect local jobs.
“Sadly, this is another major company which has ceased to trade because of the difficult economic conditions and these unforeseen situations are now a financial reality for large organisations like ourselves, especially in the public sector.”
In March last year the Fountains Group had announced its long-term financial future had been secured, after it was sold to a group of financial investors including Royal Bank of Scotland and Alchemy Partners.
Richard Haddon, chief executive of Fountains, said at that time: “This is a significant step for our company and provides us with stability and security of finance that will allow us to continue with our growth plans.
“I would like to sincerely thank our staff, customers, suppliers and contractors for their support especially in the last few months.”
The job losses come more than a year after a previous scare for the workers. Their jobs were saved when parent company Connaught Partnerships went into administration in September 2010.
Some 300 Norwich workers were made redundant when Connaught Partnerships – picked by Norwich City Council to carry out housing repair and maintenance work for the authority – went into administration.
Administrator KPMG secured the survival of the Connaught Environmental division, which was rebranded as Fountains.
See tomorrow’s paper for the full story and reaction.
• Have you been affected by today’s announcement? Call Evening News reporter Richard Wheeler on 01603 772474 or email richard.wheeler@archant.co.uk
Latest News
- South Norfolk Councillors approve council tax freeze
- Royal Anglians “supremely prepared” for Afghan deployment in March
- Lions Club to award unsung young heroes across Norfolk
- Art enthusiasts issue appeal after painting is stolen from The Rumsey Wells pub in Norwich
- Picture Gallery: Langley School pupils take on UEA in polo match
Multimedia
Other News Articles
- Inquest opened into death of Trowse teenager Maisie Baxter
- South Norfolk Councillors approve council tax freeze
- Police investigate comments on tribute site to Norwich teenager Maisie Baxter
- Council vow to remove ‘protest’ camp on Norwich’s Mousehold Heath
- Royal Anglians “supremely prepared” for Afghan deployment in March
- Art enthusiasts issue appeal after painting is stolen from The Rumsey Wells pub in Norwich
- British Transport Police called to report of suspicious passenger on Norwich to London train
- Sale of Peacocks to see Norwich, Great Yarmouth, Dereham and Bury St Edmunds shops to close
- Tributes still coming in for Trowse teenager Maisie Baxter
- Jewellery stolen in burglary at St Williams Way, Thorpe St Andrew
39 comments
Being a poor immigrant Tibetan Monk who has, regrettably, put on a bit of weight recently I often walk around in a tight t-shirt sporting a skinhead. Does this mean I will be unable to join the BNP?
Report this comment
Yahweh or the Highway
Monday, January 30, 2012
@God is a gas , Skinheads, tight teeshirts, they went out donkey years ago, BNP are nothing to do with the national party you need to look at their website.
Report this comment
gerry mitson
Sunday, January 29, 2012
My thoughts are with the families that have lost their jobs in these troubled times, good luck to you all.
Report this comment
Queenie
Sunday, January 29, 2012
If Karlsberg made corrupt councils then Norwich Council would be the most corrupt council in the World (odd as it is not in Mexico)
Report this comment
chebram71
Saturday, January 28, 2012
Milecross, I too feel disillusioned by the three main political parties and feel it is definitely time for a change. I feel almost completely convinced by the strength of your argument, and am wondering where I can find more information about your exciting alternative. Please can you help? I don't know if it has any bearing but I am a Tibetan immigrant with undying devotion to the Dalai Lama. Can I still join the BNP?
Report this comment
Yahweh or the Highway
Thursday, January 26, 2012
Billie the Bookie suggests getting school leavers to do the work.Sorry Billie,not allowed H&S.I worked on a council for over 30yrs and when competetive tendering came in the council was giving contracts out to firms they knew had no chance of fulfilling their contract.The old direct labour system worked to a point but had such a strong union representation Maggie was determined to crush it.All we saw then was management being shuffled from one post to another and the poor old worker made redundant.Just the same as what is happening now in the Town Halls and council offices.
Report this comment
john kendall
Thursday, January 26, 2012
@god is a gas.People like you think its a crime to give british jobs to british workers . Have a look at the bnp webpage and you will see that the bnp wants british workers to be given british jobs ,houses and taxes. Its looks a pretty good deal compared with the deal they are getting off the coalition at the moment. . Definately better than the deal they got off labour
Report this comment
milecross
Wednesday, January 25, 2012
Milecross, the political system has let people down. However the system allows for it to be put right; you have a democratic right to exercise your vote to reflect your views and change the government. However do the BNP have the answers? Men with skinheads in tight t-shirts with a fetish for world war 2 do not necessarily provide solutions to complex economic and political issues. Come on Milecross, lets not resort to the old ‘lets use the foreigners as scapegoats’ argument. If it was not for our foreign friends we would not have coronation chicken, IKEA, the NHS and rap music.
Report this comment
God is a gas
Wednesday, January 25, 2012
the situation in norwich and the uk is starting to resemble greece. The average person on the streets needs to see that the cuts are fair from the goverment all the way down to the town halls and this is not happening. At the end of the day you only get what you vote for. The three main parties have let us down badly. They do not represent the people of this country any more. . You need to vote for a party who puts british people first and thats the bnp
Report this comment
milecross
Wednesday, January 25, 2012
i am one of the workers that got harshly made redundant by this firm which was operated by cowboys from the start. The streets need cleaning and the bins need emptying, there 50 ex street cleaning workers waiting to do this job as before who is going to take us on so we can do our jobs again? As for that idiots comments about employing younger people try thinking before you put your mouth into gear mate
Report this comment
alnoa66
Tuesday, January 24, 2012
Serco's seem to be doing ok with Breckland council...Norwich City council take a leave out of Breckland county council's book!!!!
Report this comment
Colby Army!
Tuesday, January 24, 2012
Brilliant comment Allsmiles. The problem with all councils especially here in Norfolk is that they are run by amateurs with a complete lack of proper business acumen. When will they learn that, in the bidding process, firms will try to undercut the others and end up unable to perform the function they are contracted to do because they are trying to do a twenty quid job for fifteen quid. Bound to end in tears.
Report this comment
alecto
Tuesday, January 24, 2012
"But the Norwich contract was not transferred, so 153 workers have lost their jobs" So investigate EDP. Why wasn't the contract transferred ??
Report this comment
"V"
Tuesday, January 24, 2012
I wonder why the cemetry gates were opened at 10.pm. So if any graves get vandalised will Norwich City Council foot the bill.Just feel for the people who have lost there jobs again, after Connaughts went belly up last year. About time Norwich City Coucil stopped sitting on there hands, and lamenting about budgets, and take a pay cut themselves.
Report this comment
mags
Tuesday, January 24, 2012
Lowest tender price gets the contract. Then they cannot sustain as a business and go pop. When will the city hall amatuers learn this business fact.
Report this comment
All Smiles
Monday, January 23, 2012
I fail to see what redundancies at a private sector company have to do with Norwich City Council. The City Council may have awarded a contract to that company under the competitive tendering rules which it is obliged to follow but it does not make the Council responsible in any way for the Company which is clearly a responsibility for its Directors.
Report this comment
Donman
Monday, January 23, 2012
Fail to see how this is the Council's fault? They are required to put work out to tender and are abliged to except best value whoever wins this was a Private company formerly called Connought that was sold by administrators, changed it's name and carried on trading and now again has gone into administration and not been sold! This Company obvoiusly has not been making money. Sad thing is so many have lost their jobs just before Norse and others take over the contracts, coinsidence that the workers on protected rights have all lost their jobs ready for the new boys to take them on at minimum wage?
Report this comment
City Boy
Monday, January 23, 2012
i am the local supervisor for tendring contract which clean the public conviences and we were told today no job no pay no nothing this was 1 week before we were due to be paid. they made us work for a month for nothing but i see the bosses and upper management kept their jobs and their pay and will be paid this month.
Report this comment
Timothy Lock
Monday, January 23, 2012
Time for Brenda Arthur to resign !!!!!!!!!!!!
Report this comment
chebram71
Monday, January 23, 2012
I make a call for heads to roll within Norwich City Council, they couldn't organize a drinking session in a brewery and are not fit for purpose.
Report this comment
Peter Trett
Monday, January 23, 2012
start city care again,it worked for years, why change something that is not broke?
Report this comment
jmm
Monday, January 23, 2012
The reason is simlple: contracting out. An appalling policy the people of norwich have been voting for since 1979. You get the council you deserve and your falling for the thatchrite love of privatisation has lead to this disaster; you were warned.
Report this comment
chasboz
Monday, January 23, 2012
We ask how this has managed to happen again? I will tell you why. 1. Labour are in charge in city hall. 2. Officers are not up to the task. 3. Old working practices are prevelant in all current and former city council employees.
Report this comment
NchNthMan
Monday, January 23, 2012
So the last group of workers who passed from city council direct labour to the private sector have ,like their fellow workers at city care, have been dumped on the dole. This Labour council with the Libs and greens have more harm to this city than ,and I hate to say this, a Tory council. How much has this coucil cost the city in failed contracts. Bring back direct labour ,for years they looked after the city, and what a fine city it was. The private sector has shown it does not work
Report this comment
Rorping
Monday, January 23, 2012
London in Norfolk, we have just as many bosses with huge pay packets in Norfolk...not forgetting tugging the forelock is a Norfolk trait.
Report this comment
nrg
Monday, January 23, 2012
chebram71, engineered I would say, the obn of Norfolk strikes again...rotten smells the norm for nuLabour.
Report this comment
nrg
Monday, January 23, 2012
Labour for the working class, don't make me laugh.
Report this comment
Cepnch
Monday, January 23, 2012
What another disaster. Nobody to blame but Norwich City Council, what the hell are they playing at? It is now 450 people having been made redundant, since they got rid of City Care!!
Report this comment
FIGGIS
Monday, January 23, 2012
So now we can expect street not to be cleaned, bins not to be emptied, if so refund on our council tax please NCC. But lets see will a short term contract go to Norse, who is nothing more than a Division of Norfolk County Council, I smell a rat and that will not be cleaned away by Fountains!
Report this comment
chebram71
Monday, January 23, 2012
Yet again contracts going to big multi nationals, and going T1T5 UP !!! when will they learn,keep it local and cut out bosses with big pay packets !!!
Report this comment
London in Norfolk
Monday, January 23, 2012
Blimey...I have a stutter. nuLabour isn't working, more people added to the dole queue.
Report this comment
nrg
Monday, January 23, 2012
Do we stick all the rubbish into one bin now?? I predict a riot at the dump tomorrow, as people bins overflow with smelly uncollected rubbish. where's the head honcho??,Do we stick all the rubbish into one bin now?? I predict a riot at the dump tomorrow, as people bins overflow with smelly uncollected rubbish. where's the head honcho??? nuLabour couldn't run a bath
Report this comment
nrg
Monday, January 23, 2012
Shouldn't we have has a statement from the city hall? Presumably they have a contingency plan in place? Or will they let our streets become a bigger mess than they already are.
Report this comment
John L Norton
Monday, January 23, 2012
These 40 50 year old men you are talking about, have proberly been doing this job since they left school or just after!!!! Someone i know has just been laid off and has been doing this job for over 25 years!!! It was fine under city care but what do the council expect when a company comes in and undercut them by several million and still expect the same level of work, not going to happen is it. Well Done Norwich City Council you have Messed up this time!!! My thoughts are with the families affected
Report this comment
JB 84
Monday, January 23, 2012
No wonder morph dropped out of the scene, guess Brenda will be on the phone to NCC, to her out of this rotten mess of folk losing their jobs...nuLabour, unfit for purpose.
Report this comment
nrg
Monday, January 23, 2012
I notice loads of men in there 40s50s. sweeping streets ect. proberly on min wage. When they could use school leavers on a much cheaper min. wage.
Report this comment
billythebookie
Monday, January 23, 2012
chebram71, and what may I ask will that achieve....NOTHING. They will be wasting their time if they do. Protests have no affect at all, Pointless.
Report this comment
MickB
Monday, January 23, 2012
Time for all the ex workers to protest inside City Hall THEN !!!!!!!!!!
Report this comment
chebram71
Monday, January 23, 2012
How has this happened again?
Report this comment
Piranha24
Monday, January 23, 2012