Caterham staff made redundant following crowdfunding success

Some troubling (and confusing) news concerning Caterham.

Caterham staff made redundant following crowdfunding success
Tour of Caterham F1 Team's Leafield factory
Tour of Caterham F1 Team's Leafield factory
Tour of Caterham F1 Team's Leafield factory
Tour of Caterham F1 Team's Leafield factory
Kamui Kobayashi, Caterham CT05
Kamui Kobayashi, Caterham CT05
Kamui Kobayashi, Caterham CT05
Marcus Ericsson, Caterham F1 Team  10
Roberto Merhi, Caterham CT05 Test Driver
Marcus Ericsson, Caterham CT05
Marcus Ericsson, Caterham CT05
Listen to this article

On the very day Caterham announced it will return to the grid in Abu Dhabi, the F1 team's entire staff was made redundant.

After a controversial crowdfunding scheme raised $3 million for the embattled backmarker, administrator Finbarr O'Connell announced that Caterham is heading to Abu Dhabi for the 2014 finale.

It is dismaying to see the amount of publicity surrounding the success of the crowdfunding on the same day that the entire workforce was made redundant while owed seven weeks' salary.

Jim McManus

A statement said it was made possible "through Crowdcube, the world's leading investment crowdfunding platform".

Crucially, Crowdcube's service accountancy and tax adviser is Smith and Williamson -- the company Caterham administrator and interim team boss O'Connell works for.

230 employees made redunant

So with O'Connell now faced with claims the crowdfunding project was at least in part a PR exercise, it now emerges that on the very same day it was declared a success, Caterham's 230 race team was made redundant.

Senior aerodynamicist Jim McManus told The Observer newspaper: "It is dismaying to see the amount of publicity surrounding the success of the crowdfunding on the same day that the entire workforce was made redundant while owed seven weeks' salary."

"The cynic in me would suggest that the two are not unrelated, and the good news has served as a convenient opportunity to bury the bad news," he added.

O'Connell, however, who is team boss for now but says his intention is to appoint an alternative, claims that staff actually wanted to be made redundant.

"It is a crazy situation but the most ironic thing is that the majority of the team were pressing me to make them redundant so their redundancy claim forms could be up and running while I try to sell the team," he said.

"If I sell the team they will be re-employed by the purchaser and those claim forms will effectively be ripped up."

A planned announcement?

As for the timing of the Abu Dhabi announcement and the redundancy letters being received by staff, O'Connell added: "I could not issue redundancy letters until Friday because it was only then that I was appointed administrator to 1MRT".

But McManus insists that some staff "actively indicated that they did not want to be made redundant".

shares
comments

Honda era begins, McLaren denies Sainz rumour

Vettel expects 'no problems' with teammate Raikkonen

The cycle of F1 upheaval Williams must end to rediscover past glories

The cycle of F1 upheaval Williams must end to rediscover past glories

Prime
Prime
Formula 1
GP Racing

The cycle of F1 upheaval Williams must end to rediscover past glories The cycle of F1 upheaval Williams must end to rediscover past glories

The state of play in F1's technical silly season

The state of play in F1's technical silly season

Prime
Prime
Formula 1
Jake Boxall-Legge

The state of play in F1's technical silly season The state of play in F1's technical silly season

Ranking the top 10 pre-war grand prix drivers

Ranking the top 10 pre-war grand prix drivers

Prime
Prime
Formula 1
Kevin Turner

Ranking the top 10 pre-war grand prix drivers Ranking the top 10 pre-war grand prix drivers

Why drivers are the least of Ferrari’s F1 worries

Why drivers are the least of Ferrari’s F1 worries

Prime
Prime
Formula 1
GP Racing

Why drivers are the least of Ferrari’s F1 worries Why drivers are the least of Ferrari’s F1 worries

How Vasseur has begun Ferrari’s mission to keep Leclerc on side

How Vasseur has begun Ferrari’s mission to keep Leclerc on side

Prime
Prime
Formula 1
GP Racing

How Vasseur has begun Ferrari’s mission to keep Leclerc on side How Vasseur has begun Ferrari’s mission to keep Leclerc on side

Why Red Bull's biggest F1 adversary is now itself

Why Red Bull's biggest F1 adversary is now itself

Prime
Prime
Formula 1
Saudi Arabian GP
Jonathan Noble

Why Red Bull's biggest F1 adversary is now itself Why Red Bull's biggest F1 adversary is now itself

How Tost's public lack of trust could hurt AlphaTauri

How Tost's public lack of trust could hurt AlphaTauri

Prime
Prime
Formula 1
Saudi Arabian GP
Jake Boxall-Legge

How Tost's public lack of trust could hurt AlphaTauri How Tost's public lack of trust could hurt AlphaTauri

What Perez's Jeddah joy means for the hopes of a real F1 title fight

What Perez's Jeddah joy means for the hopes of a real F1 title fight

Prime
Prime
Formula 1
Saudi Arabian GP
Alex Kalinauckas

What Perez's Jeddah joy means for the hopes of a real F1 title fight What Perez's Jeddah joy means for the hopes of a real F1 title fight