The John Lewis retail group says it has transferred all its business with delivery company City Link to alternative carriers in response to the "regrettable news" that the firm has gone into administration.
The RMT say they told their members yesterday that it understood wages owed up to December the 31st would be paid, but that any further payments are not guaranteed.
"Massive body blow to all our members at City Link who have made great efforts and sacrifices to their pay and terms and conditions in order to make the company a success since its current owners took control in 2013".
"Substantial redundancies" are expected at the Coventry-based delivery firm City Link over the coming days because no buyer had been found to save the troubled company.
Professional services company EY said a number of staff will be retained to help return parcels to customers and help with winding down the company. It was founded in 1969, and has a fleet of 1,700 vehicles. The company's website said it delivered 60 million items across the UK and worldwide each year.
Customers who placed parcel orders with the company on Christmas Eve and the intended recipients who have been notified of a failed or pending delivery, are urged to retrieve their parcels as soon as possible on or after December the 29th.
Customers can do so at the company's 53 depots throughout the UK, which are remaining open for a short time to allow enable people to collect their parcels.
City Link's online parcel tracking system remains live, and a help phone will be open on Saturday December the 27th and from December the 29th.
Union leaders have vowed to do everything in their power to fight for the thousands of jobs put at risk with the collapse of City Link into administration.
Mick Cash, general secretary of the RMT union, said:
This is the bitterest blow any group of workers could receive on Christmas Day and it is absolutely shocking that the company have sprung this announcement once all the Christmas deliveries have been completed.
RMT will do everything within its power to mobilise a political and industrial fight to save the thousands of jobs that have been put at risk as a result of this shock announcement.
Around 2,700 jobs are at risk after one of the UK's biggest parcel delivery services companies fell into administration on Christmas Eve.
Coventry-based City Link is owned by investment firm Better Capital, headed by Jon Moulton, the veteran venture capitalist and it is understood to count John Lewis among its largest clients.
Professional services company EY have confirmed that they have been appointed as Administrators.
EY said it expected "substantial redundancies" over the coming days because no buyer had been found to save the troubled company.
Operations have been suspended at all its depots until Monday, when customers and recipients will be able to collect their parcels.
Parcel delivery company City Link which employs 2,727 people, has gone into administration. Professional services firm EY confirmed the news today. The firm is based in Coventry.
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