ADMINISTRATORS of disgraced and bankrupt parcels delivery firm City Link began selling off the firm’s assets yesterday — but redundant workers and small contractors won’t see a penny of the cash.

City Link is in the hands of administrators Ernst and Young after declaring itself broke last month.

On Christmas Eve it told 2,700 workers they were to be made redundant — most of them within a week.

Parent company Better Capital (BC) will be repaid a £20 million investment in City Link because the cash was injected as a secured “loan.”

But under current legislation the administrators have no legal responsibility to make redundancy payments to the sacked workers, or to hundreds of small sub-contractors owed money.

Any redundancy payments will be funded by the taxpayer.

The administrators’ initial sale of City Link’s assets raised £1.1 million.

Administrators have refused to meet representatives of the Rail, Maritime and Transport (RMT) union, which represents the firm’s workers.

RMT general secretary Mick Cash (pictured) said: “It is clear that a fire sale of the remaining assets of City Link is under way, and it is outrageous that the union is being denied a meeting and proper consultation with the administrator when there is a chance to rescue jobs.”

Mr Cash is calling for talks with Business Secretary Vince Cable.

The Scottish government is setting up meetings to try to help 165 City Link workers based in Scotland.