News

Union renews call for fresh probe into Thomas Cook collapse

A new probe into the collapse of Thomas Cook is being demanded after it emerged that government departments failed to liaise over a possible rescue deal.

The Unite union made the call after disclosing fresh details from a Freedom of Information request concerning the Department for Transport.

The DfT initially responded by saying it began examining contingency planning options with other government departments and the Civil Aviation Authority for the eventual collapse of Thomas Cook in April 2019.

But the union revealed that after it publicised the Dft’s response a week ago, the department then wrote to admit: “The meeting referenced above was attended by representatives from the Department for Transport and the Civil Aviation Authority only.”

The response renews concerns that the DfT worked alone in dealing with Thomas Cook’s difficulties last year ahead of the eventual failure at ther end of September.

That is likely to have been a “fundamental reason” why no rescue package for any part of the Thomas Cook group was even contemplated, Unite claimed.

The DfT’s lack of engagement with other parts of government, such as the Department of Business Energy & Industrial Strategy and the Treasury first emerged during the select committee hearing with Thomas Cook’s former senior executives in October.

It was revealed that they were instructed not to speak to representatives of any other government department following a meeting with the DfT on September 9.

The DfT’s belated admission suggests that it had been operating in a “silo” for five months, Unite claimed.

“The failure to involve the business department at an early stage explains why a rescue package similar to that put forward at British Steel was never explored for Thomas Cook,” the union said.

“This was especially relevant for the Thomas Cook airline which was highly profitable but was instead allowed to collapse into compulsory liquidation along with the rest of the group.”

More than 4,000 people were employed in the airline alone and lost their jobs.

Unite assistant general secretary Diana Holland said: “The latest admission from the DfT demonstrates fresh levels of arrogance and blinkered thinking.

“Ministers at the DfT deliberately prevented a joined up government approach which could have created a British Steel style rescue package in favour of an isolationist and defeatist strategy, which was limited to repatriating holidaymakers and not keeping the airline flying.

“These new revelations further heighten the need for a fresh select committee inquiry into the collapse of Thomas Cook and the role that the government played in its demise.

“In the Thomas Cook airline alone over 4,000 workers lost their jobs and they and their families have faced financial misery as a result of the government’s failures.”

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.