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Redundancies more than double to 450 following concerns about claims costs.

Kier Highways Ltd (KHL), formerly EM Highway Services Limited acknowledges ‘we can’t reconcile the revenue and the costs to our business’ and discloses further redundancies:

In April 2015, ‘Building’ reported:

both Mursell (Kier) and Rumbles (Mouchel) insisted there would be “very few” job losses as a result of the deal. Rumbles argued the deal was about “creation of jobs, not job losses”, with job losses restricted mainly to duplicated “corporate functions”, including “my job, and my CFO”.

On 25th January 2016, Infrastructure Intelligence, advised:

Contractor Kier has announced 180 job losses due to slow growth in highways coinciding with consolidation of the combined Kier-Mouchel business
80 job cuts at Kier’s London Highways Alliance contract for Transport for London
… a further round of 100 job cuts at its Area 9 highways contract for Highways England in the West Midlands

The figure of 180 job losses was reiterated when, 3 months ago, Construction Enquirer, wrote:

At least another 100 staff are facing redundancy at Kier’s highways business as the fallout from the integration of Mouchel continues.
The Enquirer revealed last week that 80 jobs are under threat at the firms London Highways Alliance Contract for Transport for London.

However, just a month later, in February 2016, CMA learned that Kier Highways Ltd.’s (KHL) claims are causing problems, the employee with whom we spoke explaining “we’re losing an absolute fortune” resulting in redundancies.

KHL explained to CMA what should occur; damage happens, somebody holds their hands up and is a decent human being, somebody pays for it, KHL fix it, job done, everyone’s happy.

On claims below £10,000 (and some over) KHL have to repair the damage at their own cost and then try to trace and obtain recovery (payment) from the person that caused the damage.  But KHL thinks they have a ‘traceability percentage’ of something like 47% which then means that 53% are repaired at their cost.

When speaking to CMA, KHL explained that in a world where budgets are getting cut all the time, at the moment the biggest the KHL employee had ever known them to be cut, KHL:

“are actually making as a business 450 people redundant”

CMA was surprised to learn from KHL:

 “that is because we can’t reconcile the revenue and the costs to our business

And that:

 “a big chunk of that does have a relation to the incidents that we can’t get paid for.”


Kier Highways Ltd (KHL) has recently submitted their accounts to 06/2015 – 150630 KHL accounts.

The accounts state “The Company is exposed to credit risk; but this is limited due to clients being public sector bodies with excellent payment performance.” Additionally, “The credit risk relating to other receivables and prepayments and accrued income has been considered by the Board and there is not considered to be any significant credit risk over and above any amounts already provided for.”

However, there is no mention of the danger claims present, nor the ‘quite heavy credits’ being given by KHL (02/2016), nor that KHL cannot reconcile the revenue and the costs to their business.  Whilst it is possible this is a new phenomenon, the above accounts were signed 30/03/2016 i.e. after the above concerns were conveyed to CMA.

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