Network Rail may axe 2,500 from workforce

Friday, 27 June 2003 5:30 AM

Fat cat payouts, 2500 job losses and fundamental betrayal; that is the substance of the charge made yesterday by rail union, the RMT, to the runner of Britain's stations and track, Network Rail.

The Rail, Maritime and Transport Union said Network Rail was planning to "axe 2,500" jobs out of the 14,000 workforce in a bid to control spiralling costs in the industry.

Network Rail has yet to confirm whether job cuts will take place, but admitted overhaul plans would be announced next week.

The union claims job losses will be introduced gradually until 2006.

Should the rumour hold some water, it will certainly fuel calls for stricter salary controls for Network Rail executives.

This week, rail workers found out that directors at the not-for-profit firm received bonus payments totalling £1.8million last year, despite 83% of trains failing to meet punctuality targets.

According to 2002-2003 annual results, Network Rail's CEO John Armitt pocketed 225,000 pounds, part of which was a gratitude payment for successfully shepherding Railtrack out of administration.

This was dwarfed by safety and compliance director Chris Leah who received 451,000 pounds, made up of 'retention' and 'loyalty' payments.

Technical director Richard Middleton received 189,000 pounds and financial director Sebastian Bull bagged 216,000 pounds.

Bob Crow, general secretary of the RMT, said the job cuts would be "obscene."

He added: "It is huge bonuses for the directors and P45s for the rest. We will resist any compulsory redundancies, with industrial action if necessary."

Following the disclosure of Network Rail's annual results, Mick Rix, general secretary of Aslef, the train drivers' union, said 'fat cat culture' still prevailed on the railways.

Network Rail was set up after the Government decided to pull the plug on the poorly performing Railtrack in October 2001.

Tags: