Although two rail industry unions have already started balloting on industrial action over pensions, Railnews understands that virtually all the parties involved - including many of the major employer organisations, as well as the four unions, ASLEF, CSEU, RMT and TSSA - have now broadly agreed that a "commission" would be the best way to examine the pensions' issues.

The lack of such a mediating forum has been seen by many as the biggest obstacle to progress so far.

The one body that has not yet agreed to the plan is Network Rail. Speaking to Railnews, Chief Executive John Armitt said the pensions debate involved complex issues and the company had reservations about the plan for a Commission.

He said that the issue needed careful consideration without the threat of disruption. "We need to draw breath and consider a sensible way forward, looking at the long-term issue of pensions across different employers. It is not going to be resolved by a simple ballot," Mr Armitt told Railnews.

However, Railnews understands now that, except for Network Rail, the major employers, including train and freight operating companies, have now written to the unions agreeing in principle to the idea of a Commission provided that the threat of disruption from industrial action is withdrawn.

TALKS BROKERED BY T.U.C.

After a massive rally last month at the House of Commons, the TUC has recently brokered talks between the rail unions and senior figures in the industry to come-up with the idea of a Commission of Inquiry.

It is suggested that, not unlike the former railway staff tribunal, this Commission would have an independent chairman, or chairwoman, sitting with a representative from the employers and another from the unions.

The dispute has arisen from a likely increase in pension contributions by individual staff and employers (who would pay £6 more for every £4 increase by staff) following pension fund valuations which showed significant shortfalls in many sections.

The unions want four undertakings from employers:
* keeping schemes open to all staff;
* capping staff contributions at 10.65% of pensionable pay;
* maintaining benefits; and
* streamlining the 100 individual company sections into just three or four.

Plans for the Commission of Inquiry emerged after RMT and TSSA had issued ballot papers, seeking approval for industrial action.

Drivers union ASLEF said it would "examine each individual response [from employers] on its merits."
ASLEF had not started balloting before the idea of a Commission was proposed. Its president, Alan Donnelly, said: "At no time did we see this campaign as a 'charter' for a national dispute."