Hotel workers walk out

Twenty staff working on the redevelopment of the Royal Hotel site have walked out over fears they will not get paid.

They work for Elequip Guernsey Limited, a subsidiary of UK-based Elequip Projects, which has been placed in receivership.

The company has been subcontracted by JW Rihoy to provide electrical and mechanical work on the project which will see 40 homes, including eight luxury penthouses, built on the site.

Charles Powers, Elequip Guernsey's project manager, said the local firm's books were in a very healthy condition.

However, no wages or bills could be paid at present because of a lack of cheque signatories.

Mr Powers said it could be up to three weeks before the workers could be paid.

In the meantime the company had stopped working on the project.