Network Rail is preparing to cut up to 1,800 jobs, or 5% of its workforce, as part of a cost-saving programme.

The owner of Britain's rail infrastructure has opened consultations with trade unions about removing 1,800 jobs from its maintenance workforce, in a move that is likely to reignite a safety row at the company.

The RMT union warned this year that cutting Network Rail's maintenance budget could threaten the company's strong safety record. The cuts are being made in response to demands by the Office of Rail Regulation that Network Rail reduce its costs by 21% over the next five years.

"We have a clear commitment to the British people to reduce the costs of running the railway," said Network Rail. "Our plans to restructure our maintenance teams will improve the way we operate the network. We are discussing our plans with our people and their union representatives and no final decisions have been made."

The RMT was not available for comment tonight. Earlier this year the union claimed that it had uncovered nearly 200 examples of Network Rail deferring "essential" track work. "The simple fact is that Network Rail is under massive pressure to save money, but it is shocking that it is prepared to defer essential works on this scale and cut the frequency of track inspections and signals maintenance in order to do so," said Bob Crow, the RMT's general secretary.

Network Rail has admitted that its five-year works programme, from 2009 to 2014, is "significantly in excess" of its budget, prompting it to shelve track replacement this year while it waits for new equipment to arrive. Network Rail plans to close the funding gap in the £35bn programme to £52m with multibillion-pound cost cuts and the introduction of new technology.

The British rail network's safety record has improved significantly since Network Rail took over from Railtrack in 2002. The last serious crash was at Grayrigg in Cumbria two years ago, when a faulty set of points was missed by a track inspection team and a Virgin Trains service was derailed at high speed, killing one passenger.

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Network Rail puts 1,800 maintenance jobs on the line in quest for savings

The Times: August 28, 2009
Susan Thompson

Network Rail has revealed plans to cut 1,800 maintenance jobs the day after it unveiled proposals for a £34 billion high-speed line between London and Glasgow.

The rail operator told staff that it was preparing to shed more than 15 per cent of its maintenance staff. “We are discussing our plans with our people and their union representatives and no final decisions have been made,” a spokesman said.

Cuts would take place between now and April 2011 and the group would attempt to redeploy as many affected staff as possible. Network Rail, which runs Britain’s rail network and its largest train stations, employs 33,000 people across the country.

The proposed cuts come after the RMT union claimed earlier this year that it had discovered nearly 200 examples of Network Rail deferring “essential” track work. Bob Crow, the RMT’s general secretary, said then: “The simple fact is that Network Rail is under massive pressure to save money but it is shocking that it is prepared to defer essential works on this scale and cut the frequency of track inspections and signals maintenance in order to do so.”

The cuts are partly attributable to Network Rail’s new funding agreement with the Office of Rail Regulation, which has asked the group to make savings of 21 per cent, or £4 billion, over the next five years.

“We have a clear commitment to the British people to reduce the costs of running the railway. Our plans to restructure our maintenance teams will improve the way we operate the network,” the Network Rail spokesman said.

“A common structure, new technology, improved standards and better track information will allow us to focus our efforts even more on preventing faults and eliminating delays while providing a safe, efficient and reliable railway fit for the 21st century.”

The bad news follows Wednesday’s announcement by Network Rail of plans for a high-speed link that could transport passengers from London to Glasgow in just over two hours.

The proposed high-speed link, it claimed, could generate almost £55 billion in revenue and benefits as well as dramatically reducing domestic air and road travel.

Network Rail will submit a detailed route proposal to the Government by the end of this year for a line from London to the West Midlands, with options to extend the line to the North of England and Scotland.

Britain’s only existing high-speed route is the track that takes Eurostar trains from London to the Channel Tunnel.

There has been little let-up in large-scale corporate redundancy announcements this month, despite hopes that the economy is stabilising.

Fujitsu, the computer giant, is cutting 1,200 jobs — one in ten of its workforce in Britain.

Lloyds Banking Group is shedding a further 200 posts in a fresh round of cuts that takes its total job losses this year to 7,500.

About 850 jobs were lost with the closure of 142 Allied Carpets outlets by administrators.

GKN, the engineering group, announced that a further 1,200 workers would be made redundant, in addition to the 2,500 jobs already cut.

In the three months to June, unemployment climbed to 7.8 per cent – its highest level in 13 years. Economists are predicting that job-less numbers will soon pass three million to rival the worst levels of the 1980s.