UK Rail Firm Jarvis May Lay Off 1,100 Workers

31 March 2010 (Last Updated March 31st, 2010 18:30)

The administrators of Jarvis in the UK said they could slash 1,100 jobs across the country. The rail maintenance firm went into administration in late March following a refusal by its creditors to extend loans. It was not possible to trade the businesses in the absence of further

The administrators of Jarvis in the UK said they could slash 1,100 jobs across the country.

The rail maintenance firm went into administration in late March following a refusal by its creditors to extend loans.

It was not possible to trade the businesses in the absence of further funding, administrator Deloitte said.

UK rail union the RMT has called on the government to step in and rescue the jobs under the Railways Act, which allows the government to act as a guarantor to protect wages, jobs and pensions.

The job cuts will affect staff at the head office in York, and at Doncaster, Glasgow, Leeds, Newcastle and Peterborough.

With more than half of Jarvis employees axed, the company is expected to cease its operations, according to BBC.

Jarvis' facilities management section, however, will continue trading as normal.

Jarvis Rail is involved in rail engineering and supplies rail repair equipment.