Network Rail and other train operating companies have launched a redundancy programme that could see more than 10,000 jobs taken out of the rail industry.
Transport unions are angry with the companies for going directly to staff with a voluntary severance scheme, however, claiming they have been left out of negotiations and warning of potential strikes.
Network Rail alone plans to cut between 7,000 and 9,000 jobs – the equivalent of between a third and a quarter of its employees.
Redundancy consultation
Collective redundancy consultation
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Talking to The Times, Tim Shoveller, regional managing director, said: “Network Rail has opened a voluntary leavers scheme, initially looking at its head office management grades that have disproportionately grown over the last decade.
“The scheme will help us, and the wider industry, modernise, adapt and change to respond to changing travel habits.
“We want to protect jobs and give our employees security and, as part of that ambition, we have agreed with our trade unions that we will aim to avoid compulsory redundancies.”
However, unions have claimed that company bosses are sounding out managers individually about redundancy packages rather than launching a formal consultation.
Some have claimed that older workers will end up being made redundant in favour of hiring a new generation of managers and engineers on worse terms and conditions.
RMT general secretary Mick Lynch accused rail companies of “taking advantage of the Covid crisis to deliver a devastating short-term cuts agenda on behalf of the government”.
“The scheme they are using does not even meet the standard of our existing agreements on reorganisations and flies in the face of our usual processes,” he added.
TSSA, which represents managers, warned of potential strikes and called Network Rail’s severance scheme “vacuous”.
Manuel Cortes, TSSA general secretary, said: “We are aware that there is a special voluntary severance scheme. This scheme belongs with the employers and it has not been agreed with the TSSA or any of the other rail trade unions. Our union has secured a no compulsory redundancy policy until at least the end of this year.
“It’s up to rail workers to decide whether or not they think they wish to take advantage of voluntary severance. This is a personal choice, but everyone should be aware that no one will be forced out of a job as the no compulsory redundancy policy prevents this from happening and our union will fight to ensure that those remaining within our industry are not overloaded with work when their colleagues depart.
“We hope we can resolve this dispute amicably but make no mistake – trains will be coming to a halt if not.”
Network Rail and other operators including FirstGroup and Abellio have an agreement with unions not to force through compulsory redundancies before the end of the year.
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The pandemic hit the travel industry hard as lockdowns meant a huge reduction in passenger numbers. It has been reported that transport secretary Grant Shapps needs to cut £2 billion of costs.
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