Siptu calls for scrutiny after Bilcon collapse

Siptu has called on the Government to insist that all public construction contracts are only awarded to reputable companies, following the collapse of a Co Galway firm yesterday with the loss of almost 170 jobs.

Some 93 Irish and 75 Polish employees of Bilcon Construction Ltd were informed yesterday that the company was going into liquidation "shortly". The company, owned by Billy Conway, is based in Portumna, Co Galway, and has been involved in several major public contracts including the Luas line and the Kinnegad by-pass.

It was also involved in a marina and apartment project in Carrick-on-Shannon, Co Leitrim, at which work stopped several days ago - the first indication of financial difficulties within the firm.

Some of its staff had been working with Gama at Tynagh Mines, according to Siptu, which represents 30 of Bilcon's employees.

The employees said yesterday that they were unaware of financial problems.

Loiza Grent, who worked as a secretary, said that they only learned of the seriousness of the situation when they were given leaflets issued by the company.

In the statement, addressed "to whom it concerns", the company told staff that the liquidator would deal with workers' claims for wages, holiday pay and redundancy.

Ms Grent said that the Polish staff were very concerned about their immediate housing needs, as they were using accommodation provided by the company. Siptu intends to hold a briefing for its members at noon today in Portumna, and says that the company already had a bad record for meeting pay agreements and pension contributions.

"We're sick to the teeth of public contracts being awarded to companies like this, which can be ten months in arrears in making pension contributions," Eric Fleming, Siptu's construction branch secretary, said last night.

"We would also like the Government to ensure that any new contractors taking up work on projects that this company was involved with are obliged to re-employ these men."

It is understood that Bilcon established its own agency to hire Polish staff for Irish sites.

Galway county councillor Willie Burke described it as a "huge blow", given that the firm was one of the largest employers in the Portumna area.