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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.”

 

goaheadplc

 

national-express-group-plc

 

stagecoach-group-plc

 

virgin-rail-group-holdings-ltd

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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.” 

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Jan RMT Circular

STATION STAFFING & SAFETY ARRANGEMENTS, POST-IMPLEMENTATION OF FIT FOR THE FUTURE – LONDON UNDERGROUND (LUL/14/5)

 

STRIKE ACTION CALLED ON 8TH and 9th JANUARY!

Further to my previous Circular IR/395/16 of 19th December 2016 I want to congratulate members for the solid overtime and rest day working ban. This has left LU with a shortage of cover to fill the gaps left by their slashing staffing levels to the bone. The Fit for the Future – Stations programme is simply not fit for purpose and stations are being chronically understaffed. The solid action being taken by members continues to highlight this unacceptable situation.

A meeting was held just before Christmas  with our LUL representatives to discuss this matter and the National Executive Committee has decided to call all station and revenue members to take further industrial action which is outlined below: –

Station and Retail members are instructed not to book on for any shifts that commence between: –

 

  • 1800 hours on Sunday 8th January 2017 and 1759 hours Monday 9th January 2017

For legal reasons we have to suspend the current overtime and rest day ban, non-familiarisation and non rostering of overtime bans just for the duration of the strike.

I urge our stations and revenue members to continue to support the above action to demand that management give their attention to resolving the issues at the heart of this dispute and start to reverse the disastrous cuts to staffing levels. We continue to impress on London Underground that the only way to resolve these issues is to have enough fully-qualified staff on all stations at all times, without having to rely on overtime and rest day working. The ticket office closure programme must also be reversed immediately.

I will of course keep you advised of all developments.

DISMISSAL – D STOREY, TRAIN OPERATOR, WEST RUISLIP – LONDON UNDERGROUND (LUL/4/1)

 Further to my circular IR/395/16 of 19th December 2016, the NEC further considered the matter just before Christmas. Having met with our reps to discuss the dispute the NEC decided to suspend the industrial action called from Christmas Eve.  However the action called for Monday 9th January 2017 remains on.

Train Operator and Instructor Operator members at West Ruislip and White City are instructed not to book on for any shifts between 0300 hours Monday 9th January 2017 and 02.59 hours Tuesday 10th January 2017

I urge our members to support this action in defence of their colleague Brother Storey who has been very harshly treated by management.

 

NON PAYMENT OF NEGOTIATED PAY INCREASE, EX UKPN STAFF – LONDON UNDERGROUND (LUL/9/18)

Referring to Circular No IR/274/16 27th September 2017, legal advice has been received on this matter and the NEC has instructed me to arrange a meeting with our reps from LU Engineering to discuss it. The NEC will consider the matter again once the meeting has taken place.

 

Yours sincerely

Mick Cash

General Secretary

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Fighting Transphobia

FIGHTING TRANSPHOBIA

 The RMT National LGBT Members’ Conference last year called for a new poster to be produced about transphobia in line with the union’s on-going fight against all forms of discrimination.  I am now pleased to enclose a copy of this poster along with TUC guidance for trade union activists to support trans members (which is also available at https://www.tuc.org.uk/sites/default/files/Transforming%20the%20workplace%20-%20final.pdf)

By way of definition, transphobia is fear, discrimination or hatred against people who have changed their gender from the one they were assigned at birth (transgender) and/or against people who do not present or identify as either male or female.  In addition, people who are born with bodies with both male and female elements (intersex) may also suffer from transphobia whether or not they consider themselves as a transperson.

The colours of the poster are from the transgender community flag.  The colours of pink and blue represent male and female gender with the ground between them.  The symbol is the transgender symbol, with the male and female symbols and combining them.

Should you have any queries please contact our Equal Opportunities Officer, Jess Webb, on j.webb@rmt.org.uk

 

fighting-transphobia-poster

 

Yours sincerely,

Mick Cash

General Secretary                                                                                                                 Enc.                                                    

 

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Retired Members Branch

Hi Brothers and Sisters,

Please do your best to come to the next meeting of the RMT LT Retired Branch.

It’s on Tuesday 10th January at 14.00 in Unity House, 39 Chalton Street London NW1 1JD.  We only meet every two months, so don’t miss it!

We will be discussing solidarity, ongoing RMT issues, and branch activities including the 2017 Retired Members Conference.  We also hope to have a guest speaker. Please find attached minutes of the last meeting.

Please take this opportunity to tell retired members that you have contact details for.  We are slowly building up mainly through e-mails and word of mouth. Most are interested and pleased to hear about the branch.

Stations Strike

From late on Sunday 8th January RMT and TSSA LU station members  are taking sttike action against  disastrous understaffing.  Details are here: https://www.scribd.com/document/335676726/Public-Leaflet-Jan17

If you can offer help on picket lines to your local branch, I’m sure it will be appreciated.

The TUC is holding a seminar on pensions which may be interesting (some of it anyway).  Details are below.

Hope to see you next week,

Comradely,

Olly New

Acting Secretary

07931 198501

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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

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RMT calls for postponement of night tube on the Pic Line

RMT calls for postponement of night tube on Piccadilly Line over safety concerns

 

RAIL UNION RMT today called for the postponement of the night tube on the Piccadilly Line – which is due to start on 16 December – due to on-going safety concerns.

The serious fleet problems involve trains that continue to suffer from “flatted wheels”, which means that they have to be taken out of service for the wheels to be checked and lathed back to safe tolerances .

RMT is calling for postponement until all the trains are fixed and safe.

Mick Cash, RMT General Secretary, said:

“LU fleet engineers have worked under impossible management pressure to keep services running on the Piccadilly Line.

“The fleet consists of 43 year old trains that have recently had their wheels replaced, leading to serious problems. RMT has been told the problem could take weeks to fix properly. The priority in the meantime should be to run a safe and reliable service in the daytime, when most people will be using the service.

“It is utter madness that while the service on the Piccadilly Line is at breaking point the company plan to run trains right through from 0500 Friday morning until 0030 Sunday.

“LUL should postpone night tube on the Piccadilly Line until all these engineering problems are fixed and the trains are signed off as safe.”

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LUL Station Strikes

Strikes Loom on Tube while middle managers shown to agree with RMT following job cuts

 

TUBE UNION RMT says that while strikes loom on London Underground middle managers have asked LUL Chief Operating Officer “How am I supposed to convince staff to break a strike/OT ban when I completely agree with many of the issues raised by the RMT?”

A leaked record of an “Area Managers Briefing” where senior Tube bosses met with area and line managers has exposed the chaos at London Underground stations following over 800 job cuts as part of LULs ‘Fit for the Future’ reorganisation that resulted in the closure of ticket offices on every station on the tube network.

Mick Cash, RMT General Secretary said,

“Tube unions have been warning LUL for two years that stations cannot function after so many job cuts. Now their own middle managers are telling them the same.”

RMT is accusing senior Tube bosses of risking passengers’ safety in order to try and avoid stations closing due to lack of staff.

“Instead of addressing a chronic lack of staff Tube bosses are ordering office workers and senior managers with no operational experience to cover the jobs of trained station staff after one day courses. We have seen people in jeans and trainers breaking safety rules as they try to cover roles that they are simply not qualified to do”, Mick added.

Tube unions are imposing an overtime ban on stations at present. As a result senior managers are having to cover for staff shortages on gatelines and platforms. While London Underground claims to be saving money they are paying managers and office workers bonuses of up to three times the cost of a customer service assistant’s wage to cover their roles.

RMT is now considering dates to take strike action in this increasingly bitter dispute over jobs, grading and forced transfers as a result of the closure of all ticket offices and associated reorganisation.

RMT has now released minutes of a management meeting between LUL Directors and middle managers. In the minutes area managers, who are responsible for all aspects of a group of up to seven stations, are quoted as saying:

 “None of the top leadership team have ever been an ACTUAL operational manger in LU. Do you really think there is a sufficient breadth and depth of knowledge?

 Doesn’t having Area Managers (£65k) regularly having to personally keep a station open in place of a CSA (£30k) clearly show that Fit for the Future was a disaster?

 Mark Wild (LULMD) was quoted at a Managing our Stations event saying we’d cut too far and the model wasn’t working, but aren’t the same people that designed the model doing the review?

 If you took a straw poll of the room what proportion do you think would take Voluntary severance now? I’d guess about 50%. How do you fix it?

 Isn’t Steve’s (Steve Griffiths LUL COO) acceptance that there will be a mandate for action ‘as usual’ (Referring to RMT’s ballot for industrial action) an indictment that we’re getting it wrong all the time, or more often than not?

 “How am I supposed to convince staff to break a strike/OT ban when I completely agree with many of the issues raised by the RMT?”

 

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Blacklisting & Construction Union Collusion?

Len McCluskey:

“I undertake to ensure an independent review of this new evidence when I am re-elected General Secretary of Unite and after the new High Court proceedings have concluded”.

 

Full story and quote:

http://morningstaronline.co.uk/a-ccd1-Blacklisted-activists-call-for-union-collusion-probe#.WFkHOZvfWhC

http://www.unite4len.co.uk/len-mccluskey-vows-carry-fight-blacklisted-workers/

 

 

Full text of original Open Letter (with more names added):

OPEN LETTER FROM BLACKLISTED CONSTRUCTION WORKERS

We the undersigned, are writing this open letter in the spirit of fraternal debate amongst members of the newly merged UCATT / UNITE construction union.

The upsurge in industrial militancy in the last few years demonstrates that when the official union works alongside rank and file activists, it is possible to mobilise workers even in a hostile environment. The merger offers an opportunity to start anew the fight against the appallingly high fatality rates and casualization of the construction industry by combining the best traditions of the two unions.

However, one issue threatens to cause internal friction: possible union collusion in blacklisting.

Some years ago, both UCATT and UNITE carried out internal investigations into possible union involvement in blacklisting. But that was at a time when barely any of the documentation was available.

Since the High Court, all that has changed. The employers were forced to provide witness statements and disclose 40 years worth of documentary evidence. It is now in the public domain that officials in both unions were recorded as the source of information on Economic League and Consulting Association blacklist files. Some of those named, remain senior officials in UNITE and UCATT to this day. Every union activist in construction knows who the named officials are, as does every major employer.

The leadership of both unions have now seen the evidence: discussions about those officials potentially implicated in blacklisting or with overly cosy relationships with industrial relations managers has been part of the behind the scenes discussions in the run up to the merger.

The High Court litigation won a multi-million pound settlement for blacklisted workers. We fully acknowledge and recognise the tremendous legal, political and industrial campaigns that the unions have undertook.

But compensation is not the same as justice: there has still been no-one held accountable for their actions. We remain resolute in calling for a public inquiry into blacklisting. But that is for a future Corbyn government. Now is the time to put our own house in order.

We the undersigned call upon the new UNITE construction section to engage an independent legal expert to carry out a thorough investigation of the allegations relating to union collusion in blacklisting, with a remit drawn up in conjunction with the blacklisted workers. If the implicated officials are completely innocent, then this is their opportunity to clear their name once and for all.  But if the independent investigation concludes that there is a case to answer, then the union should take the appropriate disciplinary action. We are not looking for a witch-hunt, we simply want answers into possible union collusion in order to avoid repeating mistakes of the past.

This issue has haunted the union for years and until it is prepared to act, it will continue to be a running sore that hinders building unity in the newly merged union. We need to unite in order to fight against unscrupulous employers and the Tories, but the newly merged union needs to start with a clean slate.

We urge members to please attend your branch or regional meetings, and send a motion in support of an independent investigation to the UNITE EC.

Yours fraternally:

Blacklist Support Group

Construction Rank and File (national)

(plus in a personal capacity)

Steve Acheson – ex-UNITE branch secretary & safety rep

Dave Ayre – ex-Crook UCATT branch secretary

Royston Bentham – ex-UCATT steward & secretary UNITE Liverpool construction

Graham Bowker – treasurer UNITE Manchester contracting branch

Graeme Boxall – branch secretary UNITE London construction branch

Ian Bradley – UNITE London contracting branch

Terry Brough – ex-UCATT North West Regional Council

John Bryan – retired Bermondsey UCATT

Daniel Collins – UNITE London construction branch

John Connolly – UNITE Liverpool

Paul Crimmins – ex-UCATT branch secretary & steward

Dan Dobson – ex-UNITE SE construction branch secretary

Stewart Emms – ex UCATT full time officials

Peter Farrell – UCATT, Construction Safety Campaign

John Flannaghan – ex-UCATT, now UNITE

Jack Fawbert – ex-UCATT convener

Lee James Fowler – ex-offshore safety rep, UNITE

George Fuller – ex-UCATT safety rep

Jim Grey – Jubilee Line steward, UNITE London contracting

Jim Harte – chair UNITE Combine Committee

Brian Higgins – ex-UCATT Eastern Regional Council & branch secretary

Kev Holmes – chair, UNITE Manchester construction branch

Stewart Hume – UNITE construction NISC

John Jones – ex-UCATT London Regional Council

Tony Jones – UNITE Manchester construction branch

Bill Kaye – UNITE Eastern Region

Steve Kelly – Jubilee Line steward, ex-UNITE branch secretary

Stephen Kennedy – Jubilee Line steward, UNITE

Greig McArthur – UNITE construction NISC

Frank Morris –UNITE EC member for construction

Tony O’Brien – ex-UCATT Southwark convenor & branch secretary

Jason Poulter – secretary UNITE Manchester construction branch

Jim Ryan –Crossrail steward, UNITE London contracting

Tony Seaman – UNITE construction NISC

Pete Shaw – UNITE construction RISC, Combine committee

Dave Smith – ex-UCATT branch secretary & London Regional Council

Frank Smith – ex-UCATT branch secretary & steward

Billy Spiers – chair UNITE construction NISC, ex-AMICUS EC member

Tony Sweeney- ex-UCATT Liverpool convener

Colin Trousdale – ex-UNITE NW Region RISC

Victor Williams – Unite construction

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November Inflation Rates

New Inflation Rates

 

The Office for National Statistics has published inflation figures for the twelve months to November 2016.

 

The Retail Prices Index (RPI) stood at 2.2% for the year to November 2016, up 0.2% from the year to October 2016.

 

Some private and public sector employers are attempting to sideline RPI as the measure for pay negotiations and are pushing other measures – such as CPI (1.2% for the year to November 2016, up 0.3% from the year to October 2016) or CPIH (1.4% for the year to November 2016, up 0.2% from the year to October 2016). These alternative inflation measures are not appropriate for pay negotiations as they are an inaccurate measure of workers’ average costs over the year.

 

Any attempts by an employer to link pay awards to CPI or CPIH must be opposed and logged with the National Policy Department.

 

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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

 

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