Category: Network Rail

The Great Rail Rip Off

Southern Rail owners Go Ahead ramp up dividends and stockpile cash while services are left to rot and safety standards are slashed
New research by transport union RMT has found that as passenger brace themselves for yet another fare increase in the New Year the four big transport groups that own many of Britain’s Train Companies are so profitable that they are sitting on increasing levels of enormous cash reserves as well as paying ever higher dividends whilst simultaneously minimising the amount of tax they are paying.

A detailed analysis of the accounts of Go – Ahead, National Express, Virgin and Stagecoach has found that

The average annual change in cash reserves is +15.75%

Average the average annual change in dividends is +8.68%

Average annual change in tax -36.8%

The full data set and chart for each company is attached and the figures for each company will dismay passengers.

For example the amount held in the bank by Southern Rail owners Go Ahead rose from £128.9m a year from 30 June 2007 by five times to £636.3m in year to 2 June 2016.

In addition the amount that Go-Ahead paid its shareholders increased while the amount that it paid the Treasury fell. Dividends rose from £28.9m in year to 30 June 2007 by 36% to £39.4m in year to 2 June 2016

Tax paid fell from £23.6m in year to 30 June 2007 by 22% to £18.5m in year to 2 June 2016. The total dividend paid over this period was £344.8m while the total tax paid over this period was £183.8m.

RMT General Secretary Mick Cash said,

“These figures show that not only are rail companies paying out ever higher dividends they are also sitting on increasing huge cash reserves whilst paying less and less tax.”

“All of their revenues come from the tax and fare payer and while the rail companies are getting richer by the year while the passenger and taxpayer get less.”

“What’s equally as scandalous is they are sitting on hundreds of millions of pounds of idle wealth which could instead be put to work increasing rail capacity and staffing and reducing fares.”

 

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DfT admits to rigging rail franchise market for privateers

DfT admits to rigging rail franchise market for privateers

RAIL UNION RMT says that today’s revelations in the media that the DfT intend to rig the rail franchise market to ensure privateers have their profits protected must be explained to Parliament and rail passengers.

The Department for Transport’s  Managing Director of Passenger Services has admitted to rigging the so called rail franchise market in order to boost company’s profits at the expense of passengers.

 In a news story today in The Times newspaper devastating details have emerged of a ‘private meeting’ between Peter Wilkinson and HSBC bank in which it is alleged he revealed how the Department will loosen financial agreements to “protect future franchises” and even “retrofit” existing franchises to alleviate the impact of any fall in passenger numbers.

Previously, Mr Wilkinson is on record as saying that train drivers that resist changes to their working practices can “get the hell out of my industry”

 Mick Cash RMT General Secretary said:

“This should come as no surprise to passengers experiencing fare increases today and simply confirms what we have been consistently saying for over twenty years.

“Train operating company profits are not earned in the market but politically fabricated out of regulatory obfuscation, political expediency and dodgy contracts which create profitable positions for private shareholders in a subsidised industry.

“How the Managing Director of Passenger Services can be promising a bank protection for this bogus profit laundering franchising system is beyond belief and is something the Secretary of State must urgently explain to Parliament.” 

INTEGRATION OF TRACK AND TRAIN OPERATIONS – NETWORK RAIL

INTEGRATION OF TRACK AND TRAIN OPERATIONS – NETWORK RAIL

 

I write further to my previous circular on the above matter (Ref: IR/379/16, 6th December 2016) in which I advised you of your union’s disgust over hearing stories via the press that the government is planning to integrate track and train operations.

As I informed you in that circular, I wrote to Network Rail expressing this union’s concern and alarm at the press reports and that we had been kept in the dark over the plans. Network Rail has now responded indicating that the speech given by the Secretary of State was in line with its policy of “Delivering for our Customers” plan and strategy which it had been pursuing since 2014. The company also advised that it had sent out emails to staff in an effort to try to calm any fears employees may have.

Additionally, Network Rail indicated to me that the Department for Transport is planning to publish a Rail Vision Paper in the New Year and that the company would be willing to meet with RMT to “allay your concerns.”

Your National Executive Committee has noted the above points and instructed me to remain vigilant over this matter and also to take up the offer of a meeting with the company and this is currently being arranged.

I will of course keep you advised of all further developments in this matter. In the meantime, I would be grateful if you could bring this information to the attention of your members.

Yours sincerely

Mick Cash

General Secretary

INTEGRATION OF TRACK AND TRAIN OPERATIONS – NETWORK RAIL

INTEGRATION OF TRACK AND TRAIN OPERATIONS – NETWORK RAIL

I write to advise branches of an announcement made yesterday by The Secretary of State for Transport that the Tory Government plans a major reorganisation of the railway which would see track and train operations integrated. Also announced was a plan for the private sector to fund, construct and operate an East West Route from Oxford to Cambridge on a similar basis to Crossrail.  Appallingly the first the union heard of this was via the press.

I have today written to Network Rail expressing our alarm and disgust at the manner in which we have been kept in the dark. We see this plan for the future of Train and Track for what it is,  a clear attempt to further extend privatisation taking us back towards the days of Railtrack where private shareholder profit was prioritised over public safety. Lethal accidents such as those at Hatfield and Potters Bar were the direct result of this skewed and dangerous logic, and we will strongly challenge any privatisation of Network Rail with all tools at our disposal.

Since the creation of Network Rail we have had a constructive relationship which has benefited the railway, passengers and staff. However it can only be described as disgraceful that the first we hear of a plan to drastically reorganise the operation of Network Rail was through the mainstream media. Network Rail regularly harp on about us being Stakeholders but we and our thousands of members appear to be an afterthought!

The idea that more privatisation is needed on the railway is ludicrous and handing over responsibility for the track over to private companies, most of whom have demonstrated repeated failures in running basic services is very alarming. Furthermore the proposed private sector construction and operation of East West Rail, operated without Network Rail involvement only serves to create further concerns over the private control of the track. We have demand urgent discussions with Network Rail to clarify the implications of this privatisation on members’ jobs and conditions.

Please pass this information on to any Network Rail members in your branch.

Yours sincerely

Mick Cash

General Secretary

 

Engineering Grades Conference Resolutions

NATIONAL industrial ORGANISING conference of engineering GRADES 2016

 

The following resolutions were passed at the 2016 conference and the National Executive Committee decisions are given below:-

 

  1. PLAIN LINE PATTERN RECOGNITION TRAIN (HSR/)

 

“Following a recent incident at Penmaenmawr when a broken rail was left for 48 hours before reporting it to Llandudno p/way office

 

On the 25/11/15 the PLPR 1 Train passed over a broken rail/large gap, but did not report it until Friday 27/11/15.  Although this is within their standard we feel that it needs to be addressed as several trains had passed over it.

 

If this had been found by a patroller it would have been attended to immediately, therefore reducing any possible danger to passengers and staff.

 

This Branch wishes to forward their concerns regarding possible safety implications raised by this issue and a review of reporting procedures.

Existing standard could lead to a derailment in any area.”

 

NEC Decision

 

“That we note the resolution from our National Industrial Organising Conference of Engineering Grades and sentiments contained within it. We further note that a file already exists on this item and that the General Secretary has written to Network Rail questioning the standards but has yet to receive a reply. The General Secretary is therefore instructed to add this resolution to the file and to seek a reply from Network Rail.”

 

 

  1. ATTACKING AUSTERITY CUTS TOGETHER (Policy/)

 

“This Conference notes that astounding breadth of attacks by the Tory government aimed at stripping and attacking our job security and conditions within the Engineering functions of both Network Rail and London Underground.

 

We believe that only action by our class will ultimately protect us and we call for the National Executive Committee to look at joint action against these cuts by engineers at each and every opportunity that arises.”

 

NEC Decision

 

“That we note the resolution from our National Industrial Organising Conference of Engineering Grades and support the sentiments contained within it. Where ever possible the NEC does its best to co-ordinate disputes, in particular disputes within our organisation, in order to ensure maximum impact and solidarity.”

 

 

  1. STOOD OFF ARRANGEMENTS – NETWORK RAIL (BR6/5/5)

 

“This Branch calls on the National Executive Committee to seek, through the General Secretary, a proper structure and process to be put in place when a member may have to be put on the stood off arrangements.

 

This Branch does believe that at such meetings Network Rail should provide a Human Resource person who should be aware of such agreements like the Stood Off arrangements and members’ cases should be brought to our coordinator’s attention allowing him/her to arrange a suitable representative to attend and help advice and protect our members.

 

Over the past year in Scotland we have had members being interviewed by the local manager and office admin where they have been handed a letter stating they are on stood-off and a representative, who happens to be nearby are asked to attend and who might be unprepared at these meetings and our members are left unaware and confused of the outcome.

 

Our union has a duty of care to make sure a proper structure is put in place and this would go a long way in protecting our members as they should not pay the price with Network Rail HR departments being reduced in size and structure.”

 

NEC Decision

 

“That we note the resolution from our National Industrial Organising Conference of Engineering Grades and sentiments contained within it. As an NEC we understand the problems that can arise within an organisation in which managers are not fully aware of the process that should be followed.

 

We therefore instruct the General Secretary to seek an agreed document with Network Rail clearly laying out the processes to be followed when placing members under the “Stood Off Procedures”. This should include our “Co-Ordinators” being informed at the initial stage when the “Stood Off” arrangements are being considered.”

 

 

  1. ENGINEERING GRADES CHARTER (Policy/)                                                                          

 

This Conference notes the success and use of Charters to promote the union and focus around joint goals to assist recruitment.

 

This is especially important given the cuts agenda and fragmentation that we have seen for years in our industry.

 

We note that the LUL Track Workers Charter is already in existence and we therefore call on the National Executive Committee along with the Engineering delegates and Organising Unit to produce a Charter aimed at large scale organisation and recruitment in Engineering Grades.”

 

NEC Decision

 

“That we note the resolution from our National Industrial Organising Conference of Engineering Grades and sentiments contained within it. We note the General Secretary is currently in the process of revising the “Charter” for our Fleet Maintenance Grades. In addition we note that LU engineering previously produced a “Charter” for contractors and also that the General Secretary is in the process of developing a “Charter” for our “Renewals Members”. We therefore instruct the General Secretary to pursue this item in conjunction with the Conference Liaison Committee to ensure that we are able to develop an effective Charter that will help recruit and retain members within this sector.”

 

 

  1. CHANGES TO TRACK ACCESS ROLES & RESPONSIBILITIES (HSR/) 

 

“This Conference is saddened by the death of Scott Dobson and the derisory fine that Carillion Rail received.  His death highlighted all that is wrong with privatisation and a cuts driven agenda that leaves Engineers facing risk of death and injury whilst earning their wages.

 

It seems every journey matters but not every worker.

 

We further note the changes to roles and responsibilities for Track Access in both Network Rail and across London Underground. We will not pay with our blood so the fat cats and Tory Ministers can rake in more and more profit.

 

We therefore call on the National Executive Committee to set up:

 

  • A joint LUL and Network Rail Engineering Forum to share plans on these cuts to track access procedures and roles

 

  • To share best practice and examples to defeat these changes
  • To build a database of incidents that are available to Engineering Reps to use in the arguments
  • Produce a leaflet to all members stating their rights and how they should be working safely on the track.”

NEC Decision

 

“That we note the resolution from our National Industrial organising Conference of Engineering Grades and sentiments contained within it. We therefore instruct the General Secretary to take this matter up in line with the conference resolution.”

  1. ‘OBSERVER OF TRAINS’ ROLE – CARILLION/NETWORK RAIL (HSR/)

“This Engineering Grades Conference is alarmed that Carillion have introduced a new role to their procedure: “Observer of Trains”.

This means that when you are using a “Site Warden Warning” Safe System of Work, you also have somebody appointed watching out for trains, providing a warning.

It is not recognised within the rule book, or by any of the other rail renewals companies to our knowledge.

However, if you work on a site that comes under their control, ie; if they are the Principle Contractor (PC), they mandate that you work to this or they refuse you permission to work.

If you are agency staff or just happen to be working within their PC area for considerable amount of time it has the potential to cause danger.

We believe this will increase the risk to our members, especially when you move onto another site, or work for somebody else and this role is no longer in place.

If Carillion believe the rule book is insufficient for the safety of our members, why haven’t they raised it through the appropriate channels and tried to get this role introduced for all staff industry wide?

All staff nationally operates to the same rule book and plan to the same Safe System of Work Hierarchy.

We ask that this matter be taken up with Network Rail and Carillion urgently and seek the withdrawal of this made up role.”

NEC Decision

“That we note the resolution from our National Industrial Organising Conference of Engineering Grades and the sentiments contained within it. We note the resolution calls for the withdrawal of this method of working. Whilst we understand the problems of having different standards of safety, within possessions, can lead to confusion and may cause unnecessary safety risks.

However as an NEC we believe that any additional methods that make the safety of our members working “On or near the line” safer should be given proper consideration. We also believe that additional staff for safety purposes fall within this category.

We therefore instruct the General Secretary to write to Network Rail branch seeking their clarification on approaching both Network Rail and Carillion with a view to putting forward proposals to the RSSB with a view to incorporating this position within the rule book. All developments to be placed back before the NEC.”

 

 

  1. PLANNING WORK “ON OR NEAR THE LINE” – REGIONAL          PROCEDURE W&W IMS000626 (HSR/)

 

“This Engineering Grades Conference is outraged to hear that Network Rail IP Wales and Western have a regional procedure in place for planning work on or near the line.

The procedure only applies to staff working on Network Rail Investment Projects Wales and Western (IP W&W)

It states that any work below the SSOW Hierarchy Fenced, must have sign off approval by their own company and Network Rail senior management.

It doesn’t apply to walking to/from site, only working. It doesn’t apply if you are more than 3 metres away from the nearest running rail. If you work for Network Rail Maintenance it does not apply. If you are working on anything other than IP W&W, it doesn’t apply.  Amey have the CEFA contract nationally, it does not apply to that.

It’s not unheard of for our projects staff to help out the CEFA staff and work on their projects acting as COSS etc.  Occasionally we have staff seconded onto Network Rail to undertake maintenance tasks, so therefore it would not apply then.

If you work on any job within a different region, it does not apply.

We all work to the same rule book and all face the same risk on a daily basis regardless of which project, or which region you happen to be working on.

We ask that this matter be taken up with Network Rail urgently and seek the withdrawal of this procedure.”

 

NEC Decision

 

“That we note the resolution from our National Industrial Organising Conference of Engineering Grades and instruct the General Secretary to raise the issue with Network Rail.

The General Secretary should question Network Rail as to the introduction of “Regional Procedures” without any consultation with this union.

 

All developments to be placed back before the NEC.”

 

 

  1.        SAFE WORK LEADER – STAFF EQUALITY (HSR/) 

                                                           

“This Engineering Grades Conference is outraged at Network Rail’s decision to introduce the new Proscient System for PDSW/SWL for all staff outside of Network Rail.

We believe that this is wrong and all staff should be treated equally.   We all operate to the same rule book and all face the same risks working on the railway, day in, day out.

We ask that this matter be taken up with Network Rail urgently to ensure this does not happen.

Many of our members’ work for rail renewals companies and can often work within maintenance possession/worksites and indeed can often be seconded to undertake maintenance tasks.

We also have Network Rail maintenance staff work within renewals worksites.

We believe that having two systems in place will not only be an operational nightmare, but in fact pose more danger to the travelling public and indeed our members.”

NEC Decision

“That we note the resolution from our National Industrial          Organising Conference of Engineering Grades and the sentiments contained within it. We therefore instruct the General Secretary to raise this issue with Network Rail concerning the use of Renewal Contractors operating the “Proscient System”. This is concerning as there has been no consultation in respect of other parties using the system and clearly poses problems of having different systems of “Safe Working”.

All developments to be placed back before the NEC.”                                           

ER1.   STAFFING LEVELS, S&T TEAMS – NETWORK RAIL                            MAINTENACE (BR4/14/5)

“This Branch is aware that Network Rail is regularly running two-person S&T Teams on         both Anglia Route and in other areas nationwide.

 

Network Rail’s management at IMDM and Area Director level are of the opinion that as         long as an initial roster shows a three-person team then they are only obliged to fill any absences due to Annual leave, Secondment, Training , Long term sickness etc. and within budget.

 

The budget within the S&T Department currently sits as two hours overtime per person        per week. Our local S&T Rep has calculated that to cover everyone’s leave entitlement alone would amount to 6 hours per person per week of overtime. So effectively the departmental         budget will always be well short of what is required to truly provide a three-person S&T team.

 

This branch feels that Network Rail is undermining both the safety and long term job security of our S&T members by taking this stance.

 

We feel that the industrial process within Network Rail has failed on this issue and so request that our union acts on our concerns. If letters and dialogue fail to resolve these issues       then our union will go into a dispute with network rail regarding this issue”

SUBMITTED TO AGM 2016

 

NEC Decision

 

“That we note tis item has been referred to the 2016 Annual General meeting.”

 

 

 

ER2.   “OH ASSIST” OCCUPATIONAL HEALTH SERVICE – NETWORK RAIL (HSR/)

 

“This Branch calls on the NEC to take on board the growing concerns that infrastructure        members are having with the occupational health provider appointed by Network Rail 2015.
Many members, who have experienced health issues like mental health, cancer and heart      disorders have been left frustrated and feel abandoned by Network Rail & OH Assist, as going through phone consultations adds to the stress and uncertainty of their heath situation.

 

This branch further believes that Network Rail’s move to OH Assist has been based    purely on finance and is not based on the wellbeing of its employees or members covered by this Conference.

 

We call on the Union through our national officials to gather the concerns of our        members and campaign to better the system of consultation in having face to face consultations   and our members should not be given a substandard service – they deserve much better after giving many years to the infrastructure companies and many of their health concerns could well be due to their working environment”

 

SUBMITTED TO AGM 2016

 

NEC Decision

 

“That we note this item has been referred to the 2016 Annual General Meeting.”

 

I can advise you that all the instructions contained in these decisions are now being carried out and I would be grateful if you could bring the contents of this circular to the attention of your members.

 

 

Yours sincerely

Mick Cash

General Secretary

 

Rail Travel Concessions (Priv)

CHANGES TO RAIL STAFF TRAVEL CONCESSIONS – 12 MONTH TRIAL

 

Further to my Circular No IR/213/14 dated the 21st August 2014 with regards to the trial changes to the rail staff travel concessions and in relation to the union’s approach to ATOC requesting an RMT representative to be an active participant at the trial evaluation during September 2015. Regrettably, ATOC responded by saying that they are unwilling to include a Union Representative and that the evaluation was a matter for individual TOCs.

As you are aware, it is union policy to pursue parity and improvements in staff travel arrangements for all staff working within our industry. Therefore, the union sought to explore all possible avenues with individual TOCs to ensure the trial arrangement was implemented permanently. I have received responses from some of the TOCs indicating that because it is an ATOC led trial and that the arrangement was extended again during September 2016 there was still no requirement for the union to get involved.

Following on from the above, I can now advise you that I have received a further response from ATOC advising that ‘the fare on which a Priv fare is calculated was expanded to include day and period walk-up off-peak fares (including super off-peak fares) for an initial one year trial period and was extended in September 2015. This arrangement has been extended for a further year and will now run up to September 2017.’

In accordance with the above, I would be most grateful if you could bring this matter to the attention of your members and I will, of course, keep you fully advised on any further developments.

 

Best wishes.

Mick Cash

General Secretary

Devolution of inner suburban rail passenger services to TfL

Dear Colleague

Devolution of inner suburban rail passenger services to Transport for London

The Government are consulting on the devolution of inner suburban mainline rail passenger services to Transport for London with a key proposal being that the responsibility for franchising certain rail services transfers from the Department for Transport to Transport for London.

The consultation document is entitled “A new approach to rail passenger services in London and the South East” and can be found at:

 https://www.gov.uk/government/consultations/rail-passenger-services-in-london-and-the-south-east-a-new-approach

The Government consultation closes on 18th March 2016 and National Executive Committee are seeking the views of effected Branches and Regional Councils.  Views are sought obviously in the context that it is the union’s clear and unambiguous policy to support renationalisation of the railways.

I would be grateful for your views no later than Monday 7th March 2016.

Yours sincerely

RMT slams "pathetic" fine over death

RMT slams “pathetic” fine handed out to contractor after rail worker death

 

RAIL UNION RMT today slammed as “pathetic” and “wholly inadequate” a fine handed out to a major rail construction company for a series of failures that led to the avoidable death of one of their workers

Carillion Construction Ltd has been fined £200,000 and ordered to pay costs of £36,570.39 following a prosecution brought by the Office of Rail and Road (ORR) for breaching health and safety laws which led to the death of a Scott Dobson. On 4 December 2012, Scott, from Doncaster, was carrying out maintenance work near Saxilby, Lincolnshire, when he was struck by a passing train.

As part of its statutory duties, ORR investigated and found a series of failings in Carillion’s planning and management of the work. Only one of the two railway lines had been blocked while maintenance was being done, whereas both lines should have been closed, to minimise the possibility of workers being struck by passing trains.

Carillion Construction Ltd pleaded guilty at Lincolnshire Magistrates’ Court.

Ian Prosser, HM Chief Inspector of Railways told the press:

“This accident was wholly avoidable, had Carillion Construction Ltd followed health and safety rules set out for the railways. Our sympathies are with Mr Dobson’s family.

“The safety of workers and passengers is a top priority for the regulator, which is why ORR inspectors are out on the railway daily, monitoring to ensure safety isn’t compromised.”

 

RMT General Secretary Mick Cash said:

 

“A fine of £200,000 to a giant company like Carillion is peanuts and will be written off as petty cash. This is a pathetic and wholly inadequate penalty for a series of corporate errors that led to the wholly avoidable death of Scott Dobson.

 

“This tragedy must serve as a wake-up call to Network Rail and our industry as a whole. The culture of contracting and casualisation on our railways means that corners are being cut and safety compromised. That cash-led gambling with rail workers’ lives has to stop and should be called to a halt right now before we have more avoidable deaths on our hands.”

Italian state Railway to plunder Britain's railways

Now Government opens door to Italian state to plunder Britain’s railways

 

In a written statement today the Government have confirmed the list of bidders given a “fast track” passport to soak up lucrative franchises on Britain’s rip-off railways.

As well as the usual list of chancers, failures, spivs and foreign state operators, a new face has emerged, “Trenitalia” – an operation owned by the Italian state.

The announcement follows the confirmation last week that Arriva/DB Schenker will be taking over Northern Rail.

RMT General Secretary  Mick Cash said:

“With over three quarters of Britain’s train operations owned by overseas state companies the Government have now decided to widen the “fast track” route to the great British rail rip-off by opening the door to the Italian state operator – Trenitalia. They are following in the footsteps of the German, Dutch, French and Chinese state rail companies.

“Along with the usual gang of failures and rip off merchants we now face the prospect of rail services in Romford being plundered to subsidise rail services in Rome. That is a scandal which proves conclusively that this rotten Government will happily have any state running our rail services as long as it isn’t the British state.

“RMT will continue to fight this nonsense and will battle for a railway owned and run by the British public in the interest of safe and efficient services.”

Threat of Privatisation – Network Rail

To the Secretary all Branches,

Council of Executive members,

Regional Councils and Regional Offices

 

 

Monday 7 December 2015

 

Dear Colleagues,

 

Threat of Privatisation – Network Rail

 

Network Rail, which is responsible for maintaining the safety of our railways, is threatened with privatisation as part of a review being carried out at this very moment. We know from experience of Network Rail’s predecessor, Railtrack, that privatisation resulted in years of underinvestment and contributed to several rail disasters. We don’t want to repeat the mistakes of the past.

 

At present Network Rail is in the public sector, which is the best option for ensuring sustainable investment in future and prioritisation of safety.

 

Please could you email your MP, asking them to write to Nicola Shaw, who is heading up the review into Network Rail, highlighting the concerns about privatisation and lending support for Network Rail to remain in the public sector. This will help ensure safety is put before profits.

 

Action for Rail have set up the following link to email your MP: http://campaign.actionforrail.org/page/speakout/Safety-Before-Profits

 

Yours sincerely

 

RATES OF PAY AND CONDITIONS OF SERVICE 2015 – NETWORK RAIL

 

 

Circular No IR/162/15

 

8th July 2015

 

TO ALL BRANCHES, REGIONAL COUNCILS AND REGIONAL OFFICES

 

Dear Colleagues,

 

RATES OF PAY AND CONDITIONS OF SERVICE 2015 – NETWORK RAIL

 

Further to my previous circular IR/153/15, 24th June 2015, Branches will be aware that after many months in dispute, the latest offer from Network Rail has been accepted by members in a referendum. This dispute was ongoing for over 6 months and has demonstrated what can be achieved when members stand firm and are prepared to take strike action to fight for a fair deal on jobs and pay. This was the first national dispute since the Signallers’ strike in 1994 and the only time since privatisation where Operations and Maintenance staff have had their pay negotiated at the same time. For the benefit of branches I will summarise how we reached the final accepted agreement.

 

At our very first pay meeting towards the end of 2014, management stated from the outset that any increase for 2015 would have to be self-funded, i.e. members would have to sell terms and conditions in order to get anything at all. On top of that they offered the inferior CPI Inflation for the next three years and most importantly refused to extend their No Compulsory Redundancy Agreement which ran out at the end of 2014.

 

After we rejected any sort of productivity strings, Network Rail offered no increase whatsoever for 2015 and RPI for the next three years. Members massively rejected this offer by 95% in a referendum, so we entered into dispute and a ballot was called for strike action and action short of a strike. Members voted by a massive 80% in favour of strike action with a 60% turnout of all members, smashing the Government’s planned thresholds for union ballots.

 

Strike action was called for the end of May with a 24 hour strike and an overtime, additional hours and callouts ban put in place. Network Rail, under the extreme pressure from RMT members, who were rock solid in their support of the planned action, tabled a new proposal which resulted in the action being suspended. This offer was for a £500 one off lump sum for 2015, RPI for the next three years and a no compulsory Redundancy guarantee until the end of 2016.  Following consultation with Area Council representatives the overwhelming view was that this offer was still not good enough so the proposal was rejected.

 

The GGC then called industrial action including a 24 hour and a 48 hour strike as well as an overtime, additional hours and callouts ban for the beginning of June.  Once again the resolve of our Network Rail members was incredible and management were left in no doubt there would a total shutdown of the network if they didn’t come back with a major improvement. Talks held at ACAS resulted in an improved two year offer which was subsequently accepted by members in a referendum.  The full details of the agreement is as outlined below: –

 

Pay

 

2015 – A 2% consolidated increase in basic rates of pay backdated to 1st January 2015.

 

2016 – A consolidated increase equal to November 2015 RPI with effect from 1st January 2016.

 

Redundancies

 

No compulsory redundancies for those members covered by this pay claim until 31st December 2016.

 

Job Security

 

Network Rail and the Trades Unions will enter into discussion to agree a comprehensive job security package working within the principles of PTR&R, which includes:

 

Voluntary Severance (VS)

Extending VS to those not affected but who want to go, via “bumping”

Publication of a national Network Rail vacancy list

Re-training

Relocation

Trial-period opportunities

 

Efficiency and Improvement Project (Completely separate from pay discussions)

 

Separate to the pay proposals, under the auspices of ACAS, discussions will be held with  Network Rail as part of an Efficiency and Improvement Project to deliver savings.

 

This will not affect members’ terms and conditions and these discussions have not held up the pay award. The General Grades Committee will consider any formal proposals that emerge and the affected members would be fully consulted in the normal way.

 

The issues proposed for discussion are as follows: –

 

  • Safe and efficient working practices and processes which identify methods to drive down incidents and accidents.
  • Examine opportunities to reduce labour-only, agency, sub-contract supplier and consultancy costs.
  • Joint review to create opportunities in our maintenance, operations and controllers teams to enable enhanced efficiency and improvements.
  • Develop a forum between Network Rail and RMT, TSSA and Unite as appropriate, to examine options for reducing waste from the business to enable further efficiencies to be made.
  • Creating single ‘point care’ teams.
  • Cross boundary working for response teams within Route for incidents and disruption.
  • Develop technology for placing of detonators and PLBs thus releasing staff for other work.
  • Train and deploy resident signallers to work adjacent mechanical signal boxes on a voluntary basis for an agreed premium.

 

Final proposals on implementation plans for any agreed changes would be delivered by 30th November 2015.

 

The above agreement means members get two years of consolidated pay increases and a two year no compulsory redundancy guarantee. When you consider that at the start Network Rail were adamant that members would have to sell off terms and conditions in order to get a pay rise and refused to guarantee no redundancies, the solidarity of members and their support for the negotiating team clearly forced Network Rail to radically alter their position.  At a time of major cost cutting and real uncertainty for members over jobs, this deal is a major achievement and I congratulate our Network Rail members for making this possible.

 

Talks will begin in the near future to discuss the Efficiency and Improvement Project under the auspices of ACAS.  Branches will be kept fully informed of any proposals that arise from this project.

 

Yours sincerely

Mick Cash

General Secretary

 

 

Network Rail Pay Referendum

TO ALL BRANCHES, REGIONAL COUNCILS AND REGIONAL OFFICES

 

Dear Colleagues,

 

RATES OF PAY AND CONDITIONS OF SERVICE 2015 – NETWORK RAIL

 

Further to my previous circular IR/140/15 dated 1st June 2015, branches are advised that the new proposals from Network Rail have been discussed with our Area Council reps. Having considered the view of our representatives the GGC has decided to conduct a referendum with a recommendation to accept the offer. Voting papers are being dispatched from today with a closing date of Wednesday 24th June 2015.

 

The full details of the proposals are as follows: –

 

Pay

 

2015 – A 2% consolidated increase in basic rates of pay backdated to 1st January 2015.

 

2016 – A consolidated increase equal to November 2015 RPI with effect from 1st January 2016.

 

Importantly, as part of this proposed agreement, and in line with the views expressed by our Representatives at the consultation meetings, we have retained the link to the Retail Price Index (RPI) as part of the structure of agreements with Network Rail.

 

Redundancies

 

No compulsory redundancies for those members covered by this pay claim until 31st December 2016.

 

Job Security

 

Network Rail and the Trades Unions will enter into discussion to agree a comprehensive job security package working within the principles of PTR&R, which includes:

 

Voluntary Severance (VS)

Extending VS to those not affected but who want to go, via “bumping”

Publication of a national Network Rail vacancy list

Re-training

Relocation

Trial-period opportunities

 

Efficiency and Improvement Project (Completely separate from pay discussions)

 

Separate to the pay proposals, the latest offer provides for joint participation (under the auspices of ACAS) between Network Rail and your union in an Efficiency and Improvement Project to deliver savings.

 

This will not affect terms and conditions and these discussions would not hold up the pay offer for 2015/16. The General Grades Committee would consider any formal proposals that emerge and the affected members would be fully consulted in the normal way.  Any proposals would have to be agreed by the union.

 

The issues proposed for discussion are as follows: –

 

  • Safe and efficient working practices and processes which identify methods to drive down incidents and accidents.
  • Examine opportunities to reduce labour-only, agency, sub-contract supplier and consultancy costs.
  • Joint review to create opportunities in our maintenance, operations and controllers teams to enable enhanced efficiency and improvements.
  • Develop a forum between Network Rail and RMT, TSSA and Unite as appropriate, to examine options for reducing waste from the business to enable further efficiencies to be made.
  • Creating single ‘point care’ teams.
  • Cross boundary working for response teams within Route for incidents and disruption.
  • Develop technology for placing of detonators and PLBs thus releasing staff for other work.
  • Train and deploy resident signallers to work adjacent mechanical signal boxes on a voluntary basis for an agreed premium.

 

Final proposals on implementation plans for any agreed changes would be delivered by 30th November 2015.

 

Since last week concerns have been raised by members with regard to information posted on Network Rail’s website on Friday 5th June 2015. The company has clarified their position in writing to the General Secretary which is quoted below: –

 

  • “The remarks under the smarter working section were carried over from a previous posting and do not apply to the proposal made to RMT on Monday 1st June 2015.
  • The issues to be discussed in the Efficiency and Improvement Project are separate from the pay proposals and will not affect your members’ Terms and Conditions.
  • Specifically, the remarks on signalling engineers (S&T) team size on the website should not have appeared there and are withdrawn.  We will not table this matter during the Efficiency and Improvement Project meetings.
  • Our proposal listed specific items to be agreed through the Efficiency and Improvement Project and we look forward to jointly developing opportunities with the Trade Unions in this forum. “

 

Having considered this latest offer with our reps we believe it is a significant improvement and our recommendation is for members to accept it. It cannot be understated just how important the massive ballot result and the clear will of our members to take industrial action has been to achieving this improved offer.

 

This proposal will mean members get two years of consolidated pay increases and a two year no compulsory redundancy guarantee. Considering at the start they stated members would have to sell off terms and conditions in order to get a pay rise and refused to guarantee no redundancies, it is clear the solidarity and determination of members has forced Network Rail to move their position massively. As a democratic union, members will have the final say on this offer and should begin receiving their papers early next week.

 

If any member has not received their voting paper by Wednesday 17th June 2015 please ask them to  contact the National Helpline on 0800 376 3706 or by email to [email protected]

 

Yours sincerely,

Mick Cash

General Secretary

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