C15 Rail industry

Composite of motions 41 and 42

Congress condemns rail companies who, in spite of rising passenger numbers, albeit at a reduced rate, have used the current recession as an excuse to make employees redundant. Such action illustrates clearly their priorities of putting company profits before all other considerations, including customer service and employee welfare.

Congress welcomes the Government’s commitment to rail freight, including the £200m allocated for the strategic freight network, but is alarmed that the industry is suffering from the impact of both a reduction in the core traffic derived from infrastructure work and a decline in commercial traffic as a result of the economic downturn. Congress acknowledges that contractions in the automotive and steel industries as well as a decline in container traffic from ports have led to a sharp decrease in commercial rail freight traffic; while the Government’s decision to increase light dues and change liabilities for business in UK ports is a further setback for the industry.

Congress is also concerned at the impact that Network Rail’s and London Underground’s engineering maintenance strategies is having on workers elsewhere in the industry in terms of redundancies. Network Rail’s decision to defer track maintenance and renewal work until 2012–2014 has been a huge blow to freight operators who rely on the work for up to 20 per cent of their revenues, and is concerned that the actions undermine the Government’s stated intention to bring forward rail infrastructure projects as a counter-recessionary measure to create jobs in the rail freight sector and elsewhere.

Congress considers that redundancies at this time are totally unnecessary, acting against both the national interest and the industry itself, which typifies the short-term outlook of greedy, self-interested groups who have made a major contribution to creating the world’s economic problems.

Congress notes that, by contrast to the hardship such redundancies cause to individuals and their dependants, those senior executives making these decisions continue to enjoy the benefits of huge basic salaries, bonuses and other perks.

Congress considers that the Government has a major responsibility for public transport and in particular the railways, given their economic, social and environmental importance. The levels of public subsidy received by these companies could and should be better used than for redundancy payments and excessive executive reward.

At a time of recession Congress considers that the Government should increase investment to improve the nation’s railway infrastructure to help fight unemployment as well as contribute to improved productivity and efficiency as the economy recovers.

Congress calls on the General Council to pursue these matters with the Government, to urge the Secretary of State to offer his maximum support to the rail sector during the economic downturn and to campaign for an industry-wide strategy to minimise the impact of the recession.

Mover:   Transport Salaried Staffs’ Association
Seconder:  Associated Society of Locomotive Engineers and Firemen