ISG – a major firm in the UK construction sector, employing thousands of workers, and with interests in many subsidiary companies – has just collapsed. On 20 September, the company announced that they had fallen into administration.
ISG is no minnow. It is the sixth largest construction firm in the UK, and has been involved in a number of high-profile projects over the years. Parts of the London Olympics’ infrastructure, for example, were built under its watch.
The immediate impact has been 2,200 construction workers thrown on the scrapheap with immediate effect, with further jobs under threat as suppliers and secondary companies take hits from the fall. Already, the fallout across the supply chain is estimated at over £700 million.
In addition, the projects that ISG were working on – including a new neurology and dementia research institute for UCL, and several proposed prison expansions – will now be halted.
This shock collapse brings back memories of Carillion’s collapse in 2018.
In that case, it was clear for some time that Carillion’s finances were dodgy. Yet despite this, the then-Tory government and the banks said nothing. In fact, even more public money was funnelled into the company, until the whole house of cards came crashing down.
Many workers will be asking the same questions now as were asked then. Who knew this calamity was going to happen? And for how long have they known this?
Most importantly: why do we – the workers – always end up getting the sack, while those who crashed the company get off scot free?
Just like with Carillion, ISG’s shareholders will walk away with billions, while workers are left holding the can. You can bet that the company’s former CEOs won’t be signing on to Universal Credit after this, that’s for sure!
It’s time to put an end to scandals like these for good. The construction monopolies should be nationalised and placed under the control of the workers who actually build things. And the vampires at the top should be staked once and for all.
