A ministerial answer to a recent parliamentary question by John McDonnell, the convenor of RMT's parliamentary group, (see notes below) reveals that the company is in talks with the Transport Department over the dispute, raising fears that it is seeking extra public subsidy to offset costs incurred in prolonging the dispute.

More than 300 guards have been striking on Sundays since January 1 after the Virgin board vetoed a settlement to the dispute over the erosion of Sunday pay rates.

"It is absolutely crazy that Virgin bosses have blocked a settlement to this dispute that would have cost them no more than £6 per guard per Sunday to settle," RMT general secretary Bob Crow said today.

"Virgin have already shown contempt for our members and the travelling public by prolonging this dispute unnecessarily.

"They have even brought in managers from other companies as far afield as Plymouth and Bristol to work on strike days, yet if we organised solidarity action in other companies we'd be hauled into court for illegal secondary action.

"No-one yet knows how much Virgin have thrown at trying to undermine our members' action, but it would be an absolute disgrace for the government to reward their intransigence with a handout of public money.

"Going cap-in-hand to the government for money also gives the lie to their claim that our members' solid strike action is having no effect.

"Bankrolling rail employers involved in industrial disputes amounts to an abuse of public money, yet it has become a very bad habit for what calls itself a Labour government.

"It is good news that John McDonnell has managed to secure an adjournment debate on industrial relations in the railways industry, on February 28. Our members and people who rely on Virgin XC services have every right to expect ministers to assure them that public money will not be abused in this way," Bob Crow said.

ends

Notes to editors:

1: More than 300 RMT members, who voted by a margin of more than two to one to strike, have refused to work on Sundays since January 1 after the company turned its back on an offer by the union to talk about the erosion of Sunday pay premiums.

2: A parliamentary question answered on February 14 reveals that Virgin Cross Country is seeking public subsidy for its industrial dispute:
John McDonnell: To ask the Secretary of State for Transport what recent representations he has received from train operating companies on industrial disputes. [49841]
Derek Twigg: Although train operating companies (TOCs) have not made representations to the Secretary of State, the nature of the franchise agreement means that TOCs do talk to the franchise managers about potential industrial disputes. Currently the only TOC which is in discussion with their franchise manager in this way is Virgin Cross Country.

3: The government had already admitted, in March 2005, that it has handed rail employers more than £23 million of public money to enable them to fight industrial disputes:
John McDonnell: To ask the Secretary of State for Transport how much was paid, and on which dates, through the Strategic Rail Authority to train operating companies in respect of compensation for loss of revenue during industrial disputes in each of the last three years. [221003]
Mr. McNulty: The arrangements under which the Strategic Rail Authority is able, at its discretion, to compensate train operators for loss of revenue in these circumstances have existed only since March 2003. Since then, payments have been made in March 2003 (£12.65 million); June 2003 (£3 million); January 2004 (£6.8 million); July 2004 (£143,000); and November 2004 (£701,000).
John McDonnell: To ask the Secretary of State for Transport what funds he has set aside to compensate train operating companies in the event of industrial disputes on the railways in the 2004-05 financial year. [221004]
Mr. McNulty: None. Payments of this sort are made entirely at the discretion of the Strategic Rail Authority and there may well be years in which none is made. No specific provision is therefore made and any payment would have to be funded from within the SRA's existing budgets.

4: Early Day Motion 1574, tabled by Jeremy Corbyn MP and signed to date by 23 others
"That this House is deeply concerned at the ongoing dispute between Virgin Cross Country and the Rail Maritime and Transport Union (RMT); is further concerned at reports that Virgin may be compromising the safety of passengers by the use of untrained and medically restricted personnel on strike days; regrets that Virgin has refused to return to the negotiating table; and therefore calls on Richard Branson to urge his company immediately to re-open negotiations with the RMT."