Railtrack contracts to cost 4,000 jobs
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
More than 4,000 jobs are likely to be shed by rail maintenance companies following the privatisation of the industry and the signing of tough new contracts with Railtrack, it has emerged.
Under the new agreements with Railtrack, owner of the country's track, signalling and stations, the seven former British Rail infrastructure maintenance units are facing a 20 per cent reduction in revenues over the next five years.
The contracts, together with track renewal work, are worth pounds 1bn a year and are the area of costs that Railtrack has identified for the biggest savings.
Eddie King of Amey Railways, new owner of BR's former Western maintenance unit covering the Paddington to Penzance line, estimated that it would have to cut its 2,500-strong workforce by about 600 over the next five years.
The six other maintenance companies will have to make similar or even bigger job cuts to improve productivity and offset the reductions in revenues. The Western maintenance unit had already shed 1,600 jobs in the two years leading up to privatisation but some of the other maintenance units are still operating with inflated BR-style staff levels.
Job cuts are also likely among the six former BR track renewal units which have about pounds 200m worth of contracts with Railtrack a year.
Instead of building in annual reductions in the revenues they can earn, Railtrack has agreed that increasing amounts of work can be put out to competitive tender.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments