RMT NEWS RELEASE: December 21, 2009

TRAIN DRIVER Alex Gordon has been elected to serve as the President of RMT, Britain’s biggest specialist transport union, for the coming three years.

In the postal ballot that closed today Bristol-based Alex, who will take up office in January, beat four other candidates and replaces John Leach, a London Underground worker whose term of office ends at the close of the year.

RMT’s President is the most senior lay official in the union, whose responsibility is to uphold the union’s rulebook and to preside over meetings of the union’s executive bodies, including the sovereign annual general meeting.

“Alex Gordon is a highly respected RMT activist who has served his union at all levels, from the all-important local rep to the union’s executive, and I know he will make an excellent President,” RMT general secretary Bob Crow said today.

ends

Posted on 9:43 AM | Permalink

Daily Mail: 31st December 2009
By Ray Massey

'Highway robbery': Train fares are to increase by 15 per cent

Rail passengers are facing inflation-busting fare rises of up to 15 per cent in the New Year, sparking accusations that 'rip-off ' increases are being disguised.

Tomorrow annual fare increases come into force which train company chiefs say will see passengers paying an average of 1.1 per cent more for their tickets.

This is largely thanks to a 0.4 per cent fall in the cost of regulated fares – including season tickets, savers and standard day returns – which are capped by the Government.

But passenger groups and rail unions say the average figure masks the full extent of the New Year rises.

Some passengers will see rises of up to 15 per cent in unregulated fares, which include most cheap day returns, long distance open, leisure and advance fare tickets.

These prices are set by the train companies themselves, with the average rise being around 5 per cent.

However the TSSA rail union said some advance purchase tickets would rise much more.

It highlighted a supersaver fare from London to Swindon rising from £20 to £23, an increase of 15 per cent.

TSSA general secretary Gerry Doherty said: 'These people have no shame. 'If there is a chance of legally ripping off the passenger they will take it. This is modern highway robbery.'

The RMT union has described the rises as a 'taxpayer-sponsored ripoff' and said that train companies were guilty of 'spin and gloss' to disguise 'massive fare hikes' on some lines.

There is particular anger that the Association of Train Operating Companies (ATOC) has chosen not to announce how much unregulated fares are rising.

ATOC normally gives separate figures for the regulated and unregulated increases.

Regulated fares, which make up around 40 per cent of all fares, will be going down from tomorrow as they are capped according to the formula of Retail Price Index measure plus 1 per cent, based on the July inflation rate.

The recession and deflation meant RPI was minus 1.4 per cent in July, meaning prices must go down by 0.4 per cent.

But details from individual train companies paint a very different picture.

For example Virgin Trains, which operates London to Scotland services on the West Coast main line, said its unregulated fares were rising by an average of 2.8 per cent.

But some tickets are going up by as much as 6 per cent, including London to Manchester anytime standard returns, from £247 to £262.

Anthony Smith, chief executive of rail customer watchdog Passenger Focus said: 'This is a sting in the tail.

'Many unregulated fares will continue to soar above inflation as the average figures will mask steep rises on individual routes.

'We are also concerned that some train operators will tinker with off-peak ticket restrictions, forcing passengers into buying more expensive tickets.'

Liberal Democrat transport spokesman Norman Baker said: 'We all recognise that times are tough but putting rail fares up will not get people back on to the railways.'

ATOC chief executive Michael Roberts defended the presentation of fare changes by saying: 'Not only is the average rise the lowest since privatisation, but it will come in well below the rate of inflation, meaning a real-terms cut in prices for many passengers.'

He said rail travel 'continues to be good value for money'.

Posted on 1:42 AM | Permalink

The Financial Times reports ('Review ordered into rail franchising', December 29 2009) that UK Transport Secretary, Lord Adonis has commissioned private consultants KPMG as part of a wider review into rail franchising by next summer when competition for rail contracts begins.

The FT speculates the government may change the way it hands out rail contracts in the new year, as it fights to restore the system's credibility following renationalisation of the UK's biggest rail contract, the East Coast main line.

According to the FT the reforms being considered include:

* a restructuring of the revenue-sharing agreement between franchise winners and the government to reduce the likelihood of them handing back a contract to run a service during a downturn;
- this translates as more public money to bail out loss-making private operators in the 'tough times'. Precisely the eventuality that Adonis' predecessor, Tom Harris boasted the current round of rail franchise negotiations had been designed to avoid.

* the adoption of longer 15-year franchises as the industry norm to buy greater stability. Most are currently seven years but passenger satisfaction is higher on Chiltern Railways, for example, which has a 20-year contract;
- this is a capitulation to a long-held ambition of the Association of Train Operating Companies who have lobbied the Department for transport for years on this issue. If stability is the issue, why not get rid of franchises altogether and run an integrated, publicly-owned, national network?

* changing the role played by train companies so that they could, for example, improve stations and rolling stock;
- this is a complete red herring. All major rail station refurbishments (Reading, Birmingham New Street, Euston) are jealously guarded by Network Rail and the DfT because of their immense importance for regional and national spatial planning strategies. They won't let a bunch of venal morons who can't run the 16.13 from Worcester Foregate Street on time, anywhere near major station improvement programs. Which just leaves the train companies fighting for the right to put up bicycle racks and hanging baskets, something that they already unfortunately responsible for, with generally dire results. The same goes for rolling stock refurbishments - anything that costs money will likely end up being funded by the taxpayer. Train companies will be allowed to continue painting the aging rolling stock different colours to distract the punters from the grim reality.

* the awarding of franchises on the basis of quality, not just price, so that train operators would be encouraged to submit proposals for improving services at the bidding stage. Furthermore, Passenger Focus, the lobbying group, would be consulted.
- genius! Awarding contracts on quality, not just on the lowest bid. Unfortunately the entire franchise awarding system is based on far more political and financial considerations, such as preventing any one operator having a monopoly of London terminii for example. Quality ain't cheap and if this review ends up recommending a solution that costs the government or the train operators more money to run train services it will be about as welcome as a fart in a spacesuit.

The FT admits the review is an attempt to shore up the rail franchise system, under fire since National Express said in July it would hand its loss-making East Coast main line back to the government. The changes are likely to disappoint unions, which have called for the railways to be renationalised.

Currently, companies bid for the right to run trains on routes. Contracts are often awarded to the train operator that offers the highest premium payments or, if the route requires heavy subsidies to be profitable, to the company that requires the lowest level of state backing.

But MPs, rail chiefs and union leaders have complained that the system places more weight on the financial payback to the government than on passenger services. It also means there is little stability for rail operators, which make their bids according to projected passenger numbers but are vulnerable to any recession.

Train executives complain that a highly regulated structure gives them little leeway to cut service levels in a recession such as the current one.

Train operators are protected by a "cap and collar" arrangement, which ensures that the government funds up to 80 per cent of losses on a franchise contract if a train operator is missing revenue targets after four years.

But while the Association of Train Operating Companies wants this subsidy to be brought forward, the government is also considering linking a proportion of it to gross domestic product. This would reduce the risk of companies reneging on a contract during a downturn.

The Department for Transport confirmed to the FT it was re-examining the franchise system but said it was "not meant to be a fundamental review".

Posted on 12:56 AM | Permalink

Morning Star: 23 December 2009
by John Millington

Rail signallers in south Wales will stage six more days of strike action next month, followed by an overtime ban, over the imposition of roster changes by Network Rail.

RMT members will kick off strike action running from midnight on January 4 to midnight on Saturday January 9, the union has announced.

In addition union members have been instructed not to work unreserved overtime between Sunday January 10 and Saturday February 6.

The series of actions follows a previous six "rock solid" days of industrial action by RMT earlier this month.

Union mmbers are aggrieved by management's insistence that rosters and shifts must be fundamentally altered without consultation with the union.

RMT general secretary Bob Crow accused Network Rail of cost-cutting and demanding workers be at bosses' "beck and call."

"After six days of rock-solid strike action, which saw managers drafted in from England with a few hours' training to run the signalling with serious consequences for services and safety, RMT members are even more determined now to stop the ripping up of agreements and the imposition of new rosters that would wreck their work/life balance," he said.

"This dispute is all about money. Our members will not be treated as slabs of meat that the management can pull off the shelf when it suits them."

Mr Crow added that RMT remained available for talks but that "senior Network Rail bosses have refused point blank to negotiate a settlement to this dispute."

Regional organiser Phil Bialyk accused the employer of breaching a 1994 national rostering agreement by imposing the changes.

"The majority of signallers work a 12-hour shift over a three-day week," he said. "Members have grown used to this and have family commitments.

"Now the employer wants us to switch to an eight-hour shift over a five-day week."

Mr Bialyk was particularly sceptical of a new "fatigue index" which managers say is the reason for the changes in shift patterns.

"Members will still be expected to work 12 hours in case of emergencies," he noted. "Where is the fatigue index for that?"

See also:

Rail signallers union plans further strike in new year

South Wales Echo: Dec 24 2009
by James McCarthy,

ANGRY signal workers are to stage six more days of strikes and ban overtime in a row over new rosters.

The Rail Maritime and Transport (RMT) union said South Wales members would walk out from January 4 until midnight on January 9 following a “rock solid” six-day stoppage earlier this month.

And it warned it would be balloting more signal workers in South Wales for strikes, escalating the dispute.

General secretary Bob Crow, pictured, said: “After six days of rock-solid strike action, which saw managers drafted in from England with a few hours’ training to run the signalling with serious consequences for services and safety, RMT members are even more determined now to stop the ripping up of agreements and the imposition of new rosters that would wreck their work-life balance.

“This dispute is all about money. It’s about cutting corners and demanding that staff are at management’s beck and call regardless of the impact on home lives. Our members will not be treated as slabs of meat that the management can pull off the shelf when it suits them.

“Senior Network Rail bosses have refused point blank to negotiate a settlement to this dispute.

“RMT remains available for talks and we will continue to press management to get around the table and negotiate an agreement.”

Network Rail said it was “disappointed” with the new strikes.

It claimed it had invited the RMT to meet next week to try to resolve the dispute.

The firm said services would run as normal with “tried and tested” contingency plans in place.

Route director Chris Rayner said: “Despite our best efforts to resolve this dispute, we are bitterly disappointed that RMT do not appear to want these discussions to happen with the latest strike action.

“We urge RMT to suspend this latest strike to come back to the table so we can get this matter sorted as quickly as possible.

“Limiting passenger disruption remains our top priority and we are confident to be able to achieve that with our robust contingency plan.

“There will be full staff strength with competent and trained signallers stepping into the breach, so that passengers will remain unaffected by this futile strike action.”

After the action earlier this month, Network Rail said 95% of trains ran.

Services from Cardiff to Bridgend, from Radyr to Coryton and from Penarth to Bargoed were all affected.

See also:

New year strikes for rail workers over rosters

BBC News: 25 December 2009

Rail workers on the picket line in Newport during the last strike

Railway signalling workers who took six days of strike action in the run-up to Christmas are expected to walk out again in the new year.

Hundreds of Rail Maritime and Transport (RMT) union members based in south Wales and the Marches are expected to go on strike from 4 to 9 January.

It is in protest at the "imposition" of rosters at a control centre due to open in Cardiff in January.

Network Rail insisted passengers would not be inconvenienced.

The union is also banning overtime as part of the action and announced it would be balloting more signal workers in south Wales for strikes, escalating the dispute.

It comes after signalling workers from areas including Cardiff, Newport, Port Talbot, Vale of Glamorgan and the Rhymney valley walked out between 14 and 19 December.

"It's about cutting corners and demanding that staff are at management's beck and call regardless of the impact on home lives" - Bob Crow, RMT union

General secretary Bob Crow said: "After six days of rock-solid strike action, which saw managers drafted in from England with a few hours training to run the signalling with serious consequences for services and safety, RMT members are even more determined now to stop the ripping up of agreements and the imposition of new rosters that would wreck their work/life balance.

"This dispute is all about money. It's about cutting corners and demanding that staff are at management's beck and call regardless of the impact on home lives.

"Senior Network Rail bosses have refused point blank to negotiate a settlement to this dispute."

But Network Rail said its plan to hold talks with to the union on 30 December had been broken off by the RMT.

It said it had "tried and tested contingency plans", which were brought in during the previous strike.

"Limiting passenger disruption remains our top priority and we are confident to be able to achieve that with our robust contingency plan" - Chris Rayner, Network Rail

The company has extra staff who can step in to ensure a full service, it added.

Chris Rayner, route director for Network Rail, said: "Despite our best efforts to resolve this dispute, we are bitterly disappointed that RMT do not appear to want these discussions to happen with the latest strike action," he said.

"We urge RMT to suspend this latest strike to come back to the table so that we can get this matter sorted as quickly as possible.

"Limiting passenger disruption remains our top priority and we are confident to be able to achieve that with our robust contingency plan.

"There will be full staff strength with competent and trained signallers stepping into the breach, so that passengers will remain unaffected by this futile strike action."

The action is in response to a consultation by Network Rail about changing roster hours to eight hours, which the company said will provide "more productive hours for employees while lowering the level of fatigue risk".

Posted on 10:35 AM | Permalink

Press Association: 17 December 2009

The operator of the CrossCountry rail franchise has said that there had been a "substantial improvement" in passenger revenues in recent weeks.

In a trading update, Arriva reported a 2.1% rise in CrossCountry revenues for the year to date, accelerating to a gain of 6.1% over the past 13 weeks.

Despite the upturn Arriva said the improvement was still insufficient to compensate for declining franchise support payments.

The company warned at the start of this year that it needed passenger revenue growth of around 10% a year to maintain 2008 profits. Revenue support measures from the Department for Transport do not kick in until 2011.

The CrossCountry franchise, which Arriva secured in 2007, covers 1,400 miles and calls at more than 100 stations between Aberdeen and Penzance, Bournemouth and Manchester and Cardiff and Stansted in Essex.

Across the business, which operates in 12 European countries, Arriva said it continued to trade in line with expectations, helped by ongoing cost reductions as it offsets recessionary pressure and a £60 million fuel cost rise.

The company said: "Whilst the economic environment remains challenging there is evidence of recovery in passenger revenue growth in our UK trains division."

At Arriva Trains Wales, passenger revenues growth was 7%, compared with the 6.7% improvement reported in October.

Revenues in the UK bus division increased by 4.4% in the 11 months to November 30, compared with 4.9% in the nine months to September. The company said it had cut mileage on regional routes in a bid to reduce its cost base.

See also:

Arriva accelerates despite fuel rises and franchise subsidy falls

Guardian: 17 December 2009
Nick Fletcher

Cost cutting and signs of recovery in train revenues have helped transport group Arriva offset a hefty £60m hike in year-on-year fuel costs.

In a trading update Arriva said bus revenues rose 4.4% in the eleven months to the end of November, while passenger revenues at CrossCountry trains rose by 2.1% in the first 48 weeks and by 6.1% in the last 13 weeks. Its two train franchises have cut costs by £15m but the company warned this would not be sufficient to make up for falling franchise support payments.

The company expects a £45m credit from an agreed change to the largest of its defined benefit pension schemes, a £70m gain from a tax settlement, but a £30m charge from scaling back its Portuguese operations.

In all Arriva said it was trading in line with expectations, and it was confident about its medium term prospects. Its shares have added 3.7p to 485.9p.

The update prompted a buy note from company broker Royal Bank of Scotland:

"There were two key messages that we were keen to hear to continue to support our buy case at this point: 1) group is trading in line with expectations and this is management's view and; 2) that CrossCountry is continuing to stabilise - in fact revenue trends are improving."

Meanwhile Panmure Gordon repeated its hold recommendation, with analyst Gert Zonneveld saying:

'The company is one of the most defensive in the subsector, with the vast bulk of its profits coming from resilient UK bus and mainland European bus and rail operations. The medium and long term outlook is good, supported by a £13bn order book and the fact that more than 60% of its revenues are from government contracts.

"The stock is now trading on a prospective PE of 9.8 times 2010 estimates and the dividend yield is 5.5%. We downgraded to a hold a few months ago when the share price was near 500p. Even though the shares do not look expensive at current levels, we believe they are unlikely to bounce strongly in the current market environment."

And Investec went the whole hog and issued a sell note:

"Arriva's trading update this morning is in line with its expectations. While bus remains solid and the rail recovery continues, Continental European operations appear to have weakened. Although we are now more comfortable that the potential scale of rail-related risks is diminishing, we continue to think it too early to buy the shares and retain our sell recommendation for now."

Posted on 12:37 PM | Permalink

RMT: 16 December 2009

Paul Flynn, Member of Parliament for Newport West and a member of RMT's Parliamentary Group of MPs has put down an Early Day Motion EDM 482 in the House of Commons in support of RMT Signalworkers who are on strike against Network Rail's assault on their terms and conditions. An Early Day Motion is a petition MPs sign to highlight issues of concern to their constituents. So far 5 MPs have signed EDM 482 (Paul Flynn, Katy Clark, Colin Burgon, Jeremy Corbyn and RMT Parliamentary group convenor, John McDonnell). If your MP has not yet signed EDM 482 please ask them to do so by writing, faxing or emailing their office. You can contact them automatically by clicking the link: Write to them.com. Don't delay - Do it today!

SOUTH WALES SIGNAL WORKERS STRIKE
EDM 482: 15.12.2009

Flynn, Paul

"That this House applauds the committed and skilled work of railway signalling workers who keep the railways moving; notes that signal workers are engaged in strike action in South Wales in protest at the imposition of new working hours by their employer Network Rail; is deeply concerned that Network Rail is seeking to force through change that will be detrimental to workers and that this is also taking place whilst company directors continue to award themselves significant bonuses; congratulates the signal workers on their solidarity; is alarmed at the safety consequences of insufficiently trained managers being brought in from throughout the UK to cover the work of the signal workers during the strike; and believes that instead of increasing the risks to safety and strike-breaking, Network Rail should concentrate their efforts on achieving a fair negotiated settlement."

Paul Flynn, Newport West (Lab)
Katy Clark, Ayrshire North & Arran (Lab)
Colin Burgon, Elmet (Lab)
Jeremy Corbyn, Islington North (Lab)
John McDonnell, Hayes & Harlington (Lab)

Further information:

Geoff Martin 0207 255 9146 (RMT Media Office)
07831 465 103 (Mobile)

Posted on 1:50 PM | Permalink

ShareCast: 15 December 2009

LONDON - Bus and train group Go-Ahead expects interim profits from its rail business to halve though its bus business is doing better.

Rail profits are expected to slide as growth in passenger numbers across its three franchises will not be sufficient to offset the reductions in net franchise subsidies from the government. Go-Ahead expects that first half operating profit will be broadly half of the first six months of last year's 34.9m.

First half operating profit from its buses will be slightly ahead of the first half of last year's £31.4m. In the regulated London bus operations, first half revenue growth is anticipated to be 6-7% and mileage to be up around 5%. Unregulated revenue will be up by 7%.

Aviation Services, most of which has recently been sold, will break even in the half, but there will be first half exceptional charges of around £41m (H1 2008/9: £58.4m), consisting of the impairment charge for aviation services of around £35m and around £6m of restructuring costs to date.

'At this stage of the year, we have not changed our expectations for the full year results. We continue to believe that the economic climate will remain difficult and we will take management action accordingly,’ Go-Ahead said.

'We expect our bus operations to remain strong in the second half of this year and to benefit from a full year of acquisition contributions, and a fully hedged reduction in fuel costs of around £6m, in the next financial year. In rail, we expect revenue growth before initiatives to be modest in the second half given the low fare increases in January 2010,'it added.

See also:

Go-Ahead Trades In Line; Rail Profit To Fall By Half

Wall Street Journal: DECEMBER 15, 2009
By Kaveri Niththyananthan

LONDON (Dow Jones)--Go-Ahead Group PLC (GOG.LN) Tuesday said it was trading in line with expectations but added profit from its rail division for the first six months of its fiscal year would be half of the GBP34.9 million posted a year ago because of reduced government subsidies.

The bus and rail operator said it continues to believe the economic climate will remain difficult and it will act accordingly, without giving details. It said it has not changed its expectations for the full year.

The company said its bus unit continues to perform well and now forecasts an operating profit for the 27 weeks to Jan. 2 ahead of the GBP31.4 million posted a year ago. London bus operations will grow between 6% and 7%. Go-Ahead added it expects first-half revenue at its deregulated bus operations to increase by 7% with passenger numbers increasing by about 5%.

It expects bus operations to "remain strong in the second half of this year and to benefit from a full year of acquisition contributions, and a fully hedged reduction in fuel costs of around GBP6 million, in the next financial year."

Fuel costs will increase by GBP2 million over the six-month period to Jan. 2, part of which will be recovered by increasing fares, it said.

First-half passenger revenue growth at its Southern and London Midland rail franchises will be 10% as passenger volumes increase between 3% and 4%. It expects Southeastern to grow 4% despite a 2% fall in passenger numbers. Revenue growth in the second half will be modest due to low fare increases planned for January 2010.

Go-Ahead's shares have fallen 14% over the past three months and closed Monday at 1271 pence.

See also:

Go - Ahead Sees H1 Rail Profit Down

New York Times: December 15, 2009

LONDON (Reuters) - Transport group Go-Ahead said first-half profit at its rail unit would be 50 percent down on last year due to reductions in government subsidies but that its bus business was performing well.

"We continue to believe that the economic climate will remain difficult and we will take management action accordingly," Go-Ahead's chief executive Keith Ludeman said.

"We expect our bus operations to remain strong in the second half ... in rail, we expect revenue growth before initiatives to be modest in the second half given the low fare increases in January 2010."

The company, which operates its commuter rail franchises through majority-owned joint venture Govia, expects operating profit at its rail unit to be broadly half the 34.9 million pounds it reported last year due to reductions in franchise subsidies from the government.

It added that passenger numbers were growing steadily across the rail business, however.

The firm, which operates bus companies and runs three London rail franchises, said first-half bus revenues would be 7 percent higher than last year but that its fuel costs for the year were hedged at 47 pence per litre compared to 43 pence last year.

Go-Ahead, which earlier this month sold its aviation services unit, said it would likely spend around 70 million pounds on acquisitions and investments in the full-year.

Go-Ahead is expected to report an average pretax profit of 81.16 million pounds for the year to the end of June 2010, according to a Thomson Reuters I/B/E/S poll of 13 analysts.

Shares in Go-Ahead, which have risen 20 percent in 2009, closed at 1271 pence on Monday, valuing the group at around 545 million pounds.

Posted on 8:31 AM | Permalink

Rail-news: December 11, 2009

RAIL UNION RMT today confirmed solid support for six days of strike action by a group of signalling staff in the Wales and the Marches Operations area – starting first thing Monday morning – over the imposition of rosters at the new South Wales Control Centre due to open in January 2010.

South Wales Control Centre: one of Network Rail's new 'Signalling Factories'

RMT warned today that managers from other parts of the UK are being brought in at short notice to try and run signaling services with union members reporting that they are receiving five hours of briefing for duties that would normally require a minimum of a month’s full training. RMT have raised the potential safety risks of trying to run rail signalling on such an ad-hoc bas in an effort to break the strike.

The strike action will run from 00.01 hrs on Monday December 14 through to 23.59 hrs on Saturday December 19.

The strike will involve RMT signalling grades members at the following NR signalling locations in the Wales and Marches Operations Area; the new South Wales Control Centre, Newport panel, Vale of Glamorgan (Barry Box, Barry Relief, Aberthaw Box, Cowbridge Road Box), Rhymney Valley (Heath Junction, Ystrad Mynach, Bargoed), Cardiff panel and Port Talbot panel.

RMT General Secretary Bob Crow said:

“Our members are rock solid in their determination to stop the bulldozing through of rosters at the new South Wales Control Centre which we believe are all about saving money and which unilaterally rip up existing agreements.

“This is nothing less than an attempt by management to impose working conditions that will allow them to shove staff around at will and force them to work up to 13 days back to back to cover for vacancies and save Network Rail money. That goes right to the heart of this dispute.

“RMT maintains that the existing 12 hour roster is tried and tested and that the 8 hour roster that Network Rail are trying to impose at the new South Wales Control Centre when it opens in January will have damaging consequences for both staff and the service. Work-life balance arrangements will be wrecked in a drive to make financial cuts.

“Rather than taking risks with safety by drafting in under-trained managers from other parts of the UK in an effort to break this strike it would make much more sense for Network Rail to get back around the table to negotiate a settlement to this dispute.”

See also:

Rail workers to strike over roster

Press Association: 13 December 2009

Railway signal workers are due to launch six days of strike action in a row over rosters at a new control centre.

The Rail Maritime and Transport union said the walkout by workers in the Wales and the Marches area will hit services, although Network Rail denied there will be any disruption.

The union claimed that managers standing in for the strikers had received five hours of briefing for duties that would normally require a minimum of a month's full training.

Posted on 8:15 AM | Permalink

The Korea Times: 12-13-2009

Kim Ki-tae, head of Korean Railway Workers' Union, has been arrested for leading an illegal strike waged by Korean Railroad (Korail)'s labor union.

Judge Kim Hyung-doo of the Seoul Central District Court, who issued the warrants at the request of prosecutors, said, "Kim's arrest was necessary because he is apparently very likely to destroy concerned evidence and flee."

Kim called off the strike on Dec. 3, and turned himself into a police station of Dec. 9. Kim had been on the police's wanted list.

Korail's unionized workers launched a strike Nov. 26 to thwart the management's attempt to shed jobs and cut wages as part of restructuring steps. The company said the union's action has dealt severe damage to the company, estimated at over 20 billion won.

Even while under arrest, Kim was quoted as saying, "If the government and management continue to provoke the union, we will stage a stronger struggle."

See also:

Railway union leader detained over illegal strike

Yonhap News Agency: 2009/12/13

SEOUL, Dec. 13 (Yonhap) -- Police took the head of a railway workers' union into custody on Sunday, accusing him of disturbing the service of the state-run Korea Railroad (KORAIL) by leading an illegal walkout.

An arrest warrant was issued for the Korean Railway Workers' Union leader, Kim Ki-tae, during the Nov. 26- Dec. 3 strike. Kim turned himself in to police Dec. 9 after seeking refuge at an umbrella labor union's office.

Some 15,000 union members, excluding 10,000 workers essential for railway maintenance, had taken part in the eight-day strike, protesting the management's decision to shed jobs and cut wages as part of restructuring steps.

KORAIL claims the walkout, the longest ever by the nation's railway workers, caused an estimated 20 billion won (US$17 million) in losses.

It said it will proceed with disciplinary procedures against 12 union leaders and seek compensation for damages from the union.

Posted on 8:07 AM | Permalink

RMT BRISTOL RAIL - Fighting Network Rail Job Cuts

CALLING NOTICE: Day of Action
Thursday, 17th December 2009 from 07.00-09.30am

• BRISTOL TEMPLE MEADS
• BRISTOL PARKWAY

As part of our campaign against the threat to 1,500 Network Rail maintenance jobs, the RMT Council of Executives has called a day of action on Thursday 17th December 2009.

On that day we are holding a mass leaflet of passengers outside Britain’s major railway stations. Our message to the public is: ‘rail cuts cost lives’.

Please join us outside the following stations, from 07.00-09.30am

• BRISTOL TEMPLE MEADS
• BRISTOL PARKWAY

Please join us – contact 01278 450562

To keep up the political pressure on the Government and Network Rail against these job cuts, a series of Early Day Motions will be drafted on the regional effects of the job cuts

Posted on 11:54 AM | Permalink

Ananova:

Train buffs are facing jail after building their own ramshackle locomotive and taking it on the public rail network.

Ramshackle loco /Europicss

The six-seater train - made out of garden furniture and salvaged train parts - was powered by an electric motor and even had its own refreshments car in the shape of a crate of beer.

Police in Erfut, Germany, were alerted after residents of properties adjoining the railway spotted the unorthodox vehicle - and were aware that there should have been no traffic running.

Police however had to call in a helicopter to find and follow the makeshift train as the police cars could not follow it along the tracks.

The helicopter pilot was able to radio ahead to other officers who set up a makeshift barrier at a station to stop it.

Railway bosses had been asked to suspend all services to avoid a collision although the train buffs had chosen to have their drive when there had been no trains scheduled.

"It seems to be one of those mad pub ideas that actually happened. They didn't seem to realise they could have caused a serious accident if they'd got anywhere near a real train," said one officer.

Six men who were arrested on the unauthorised vehicle are currently facing public safety charges.

Posted on 11:30 AM | Permalink

RMT SW&W Regional Council has called a STRIKE SUPPORT MEETING

WHEN: Thursday, 10th December 2009
WHERE: Cardiff Transport Club - 59-61 Tudor Street, Cardiff
SPEAKERS: RMT Executive Committee, Alex Gordon
Commencing at 18.30hrs

RMT has called six days of strike action by Network Rail Signallers in Wales and Marches over imposition of rosters at the new South Wales Control Centre due to open in January 2010.

The strike will run from 00.01 hrs on Monday, 14 December through to 23.59 hrs on Saturday, 19 December 2009.

RMT General Secretary Bob Crow said: “Our members are furious at the attempt to bulldoze through rosters at the new South Wales Control Centre which we believe are all about saving money and which unilaterally rip up existing agreements. Their support for strike action in this ballot shows just how determined they are to force a management rethink.”

Please make every effort to attend Solidarity with our striking members!

Organised by RMT South Wales & West of England Regional Council
Secretary, Steve Skelly – Mobile: 07766 020531 - email: bridgendllantrisant@rmt.org.uk

Posted on 1:38 AM | Permalink

The Financial Times reports (December 7 2009) that National Express is to appoint Dean Finch, boss of London Underground maintenance company Tube Lines and former chief operating officer of rival bus and rail operator FirstGroup as its chief executive.

The previous National Express chief executive, Richard Bowker resigned in July, after it became clear the company couldn't afford to run the lossmaking East Coast railway line between Edinburgh and London, which was renationalised last month. By taking the franchise back from National Express and holding it for more than a year the government is losing out on payments of £179m due under the contract in 2010/2011, putting further strain on a state rail budget that is already pumping an estimated £500m into struggling franchises in the form of revenue support over the next two years.

The franchise will be owned by a new company called 'Directly Operated Railways', whose chief executive is Elaine Holt, former head of the First Capital Connect franchise. "DOR will be responsible for the East Coast main line operations and will then continue to manage the franchise until it is re-let again to a new private operator – anticipated in mid-2011."

National Express has £1bn of debt and was forced to go to shareholders for a £360m rights issue two weeks ago. But the financial crisis has sparked a dispute with NX's majority shareholder and deputy chairman Jorge Cosmen, who campaigned against the equity-raising attempt on the grounds that the amount sought was too large and the business lacked a well-defined strategy.

Mr Cosmen feared National Express would be sacked from the rail business when Lord Adonis, UK transport secretary, threatened to take back two remaining train franchises - C2C and East Anglia - as a penalty for withdrawing from East Coast. In the event, Adonis pulled his punches, allowing National Express to retain the contracts until they expire in 2011.

National Express has been subjected to three takeover bids, two of which Mr Cosmen supported.

See also:

Business big shot: Dean Finch

The Times: December 8, 2009
Angela Jameson

Dean Finch, chief executive, Tube Lines

Rail commuters will be familiar with the problem. You are strap-hanging on the 5.45 when you spy an empty express train pulling into the platform opposite. Do you make a run for it and risk missing both of them? Or, worse, do you make the express train, only to find that its crew has gone AWOL and the engine will not be leaving the station any time soon.

Such a dilemma faces Dean Finch, chief executive of Tube Lines, London Underground's maintenance company — indicating the dearth of management talent in the transport sector.

It is only six months since Mr Finch jumped from FirstGroup, where he was chief operating officer and tipped for the top, to Tube Lines, where he got to run his own show for the first time. Now another rail and bus company — National Express — wants Mr Finch to be its chief executive and an announcement was expected this week to say that he had jumped fenders. But David Begg, chairman of Tube Lines, has decided to put up a fight. Mr Begg said yesterday that his chief executive was still considering the National Express approach and would make a decision over the next week.

Mr Finch, known for being a details man and razor-sharp, trained as an accountant with KPMG before joining First nine years ago. He quickly made himself essential to Sir Moir Lockhead, the chief executive, and was rewarded with a year’s spell in America, where he integrated the Laidlaw bus and coach business, FirstGroup’s $3.5 billion acquisition that propelled it into the top tier of global private transport operators. However, such was his influence on the British company that there were concerns that operational difficulties, particularly on First Great Western, could mount while his time was taken up elsewhere.

When he returned from the United States, he became First’s chief operating officer and was expected to take over from the 64-year-old Sir Moir. But Mr Finch, approached by Tube Lines last year, decided not to wait.

Too clever to be a bruiser, according to one industry insider, but also someone who does not suffer fools, he would relish the challenges that steering National Express would pose. However, the fact that the troubled transport group is likely to be a rail operator for only another two years may have made him hesitate, so keen is he on the railways. His track record goes back a long way, having worked on the privatisation of the industry and the rail franchising model at KPMG.

Posted on 1:35 AM | Permalink

International Freighting Weekly: 7th December 2009
Tony Berkeley

European Rail Freight Association president Tony (Lord) Berkeley sees liberalisation of European rail freight as a political issue - one that the 'liberalisers' are losing as EU rail directives lead to the consolidation of major freight operators and the emergence of an oligopoly - "a market dominated by a few large suppliers".

Rail freight liberalisation has been on the European agenda since 1991, when the first directive was issued, designed to bring the single market to rail freight in the same way as it did to road freight some years before.

It also needs to put the segmentation of the rail freight market right, and should lower the notification threshold for mergers and acquisitions with EU competition authorities.

Tony Berkley

--- END ---

Posted on 1:34 AM | Permalink

Railnews: 6th December 2009

A new proposed French rolling stock tax which could cost Eurostar £5 million or more a year is set to be challenged under European law. The French proposal would come into effect just before Christmas -- only a short time before international open access starts on 1 January.

The tax is part of the French 2010 Finance Bill, and would apply to all passenger rolling stock. The domestic state-owned operator SNCF would not be greatly affected, because an asset-based tax levied on the French operator would be partially withdrawn, making the effect of the changes largely neutral.

However, other operators would be worse off, including Eurostar, which it is estimated would have to pay some £5.5 million a year. Other operators also set to be hit include Thalys, which operates High Speed services from the Netherlands and Belgium to France.

The tax would also affect any operator which might be intending to take advantage of the impending open-access regime to provide new international services to London, because the continental approach to the Channel Tunnel is in France. The tax is apparently not calculated on such variables as the distance travelled or the number of passengers carried.

The railway industry in other countries is now reported to be taking legal advice, because the move is being seen as anti-competitive. Those joining the protest could include Deutsche Bahn and Eurostar, who may argue that the tax would be a breach of the EU obligation not to adopt domestic measures that have a negative effect on transport operators from other member states.

Posted on 1:33 AM | Permalink

Railnews: December 4, 2009

RMT today announced six days of strike action by a group of signalling staff in the Wales and the Marches Operations area over the imposition of rosters at the new South Wales Control Centre due to open in January 2010.

A ballot for action delivered a two-to-one majority in support of a strike which will run from 00.01 hrs on Monday December 14 through to 23.59 hrs on Saturday December 19.

The action will involve RMT signalling grades members at the following NR signalling locations in the Wales and Marches Operations Area; the new South Wales Control Centre, Newport panel, Vale of Glamorgan (Barry Box, Barry Relief, Aberthaw Box, Cowbridge Road Box), Rhymney Valley (Heath Junction, Ystrad Mynach, Bargoed), Cardiff panel and Port Talbot panel.

RMT General Secretary Bob Crow said:

“Our members are furious at the attempt to bulldoze through rosters at the new South Wales Control Centre which we believe are all about saving money and which unilaterally rip up existing agreements. Their support for strike action in this ballot shows just how determined they are to force a management rethink.

“RMT maintains that the existing 12 hour roster is tried and tested and that the 8 hour roster that Network Rail are trying to impose at the new South Wales Control Centre when it opens in January will have damaging consequences.

“We remain available for talks and would urge Network Rail to get back around the table to negotiate a settlement to this dispute.”

See also:

Rail disruption fears as signal staff threaten to strike

South Wales Echo: Dec 5 2009
by Kathryn Williams

RAIL services across South Wales face “massive disruption” as hundreds of signalling workers prepare to strike.

Members of the Rail Maritime and Transport (RMT) union in South Wales and the Marches will walk out from December 14-19 in protest over a new roster system being introduced at the new signalling control centre due to open in Canton, Cardiff in January.

There were warnings last night that the move would lead to “huge and justified anger”.

A Network Rail spokeswoman said most services would remain unaffected because a contingency plan would see replacement staff operate the rail signals.

But the union condemned the plan saying it would involve replacing skilled signalling workers with “some sort of volunteer dad’s army”.

The workers, who voted 2-1 in favour of strikes in a ballot, are based in areas including Cardiff, the Vale of Glamorgan and the Rhymney Valley. They are also based at Newport and Port Talbot.

They are angry at Network Rail’s plans to scrap the current roster system, which sees staff work 12-hour shifts three days a week.

When the new control centre opens in January, the firm wants staff to work eight-hour shifts more frequently. The union’s general secretary Bob Crow said: “RMT maintains that the existing 12-hour roster is tried and tested and that the eight-hour roster that Network Rail are trying to impose at the new South Wales Control Centre when it opens in January will have damaging consequences.”

The new Cardiff control centre is part of £400m programme to upgrade the signalling system in South Wales.

The union said the new centre was being used “as a way of demanding changes to working conditions”.

In a statement, Network Rail said: “The RMT is wrong to strike. Out-of-date, inefficient work practices cost Network Rail and passengers too much money.

“The RMT needs to recognise economic reality and bring itself into the modern world of work.”

The strike is planned for one of the busiest periods for Christmas shoppers flocking to Cardiff’s stores.

City centre manager Paul Williams said: “It’s imperative that every opportunity is maximised to negotiate with all parties to achieve an appropriate way forward that ultimately prevents this action being taken at the busiest time of year.”

Simon Pickering, Wales manager of the independent passenger watchdog, Passenger Focus, said: “It is passengers who suffer in the event of industrial action and we urge all parties to get round the table to keep talking and find a solution without resorting to strikes.

“In the event of a strike, we want train operators to ensure that plenty of accurate and timely information is given to passengers so that they can make an informed decision about their journey.”

Jenny Randerson, AM for Cardiff Central and the Lid-Dems’ shadow transport minister, said: “What is important is that negotiations begin immediately to divert strikes in the run up to Christmas.

“Passengers are already facing delays through maintenance work at this key time for the travelling public, and any further disruption to services will lead to huge and justified anger.

See also:

RMT announces six days of strike action by South Wales signalling staff over imposition of rosters

RMT: December 4 2009

RAIL UNION RMT today announced six days of strike action by a group of signalling staff in the Wales and the Marches Operations area over the imposition of rosters at the new South Wales Control Centre due to open in January 2010.

A ballot for action delivered a two-to-one majority in support of a strike which will run from 00.01 hrs on Monday December 14 through to 23.59 hrs on Saturday December 19.

The action will involve RMT signalling grades members at the following NR signalling locations in the Wales and Marches Operations Area; the new South Wales Control Centre, Newport panel, Vale of Glamorgan (Barry Box, Barry Relief, Aberthaw Box, Cowbridge Road Box), Rhymney Valley (Heath Junction, Ystrad Mynach, Bargoed), Cardiff panel and Port Talbot panel.

RMT General Secretary Bob Crow said:

“Our members are furious at the attempt to bulldoze through rosters at the new South Wales Control Centre which we believe are all about saving money and which unilaterally rip up existing agreements. Their support for strike action in this ballot shows just how determined they are to force a management rethink.

“RMT maintains that the existing 12 hour roster is tried and tested and that the 8 hour roster that Network Rail are trying to impose at the new South Wales Control Centre when it opens in January will have damaging consequences.

“We remain available for talks and would urge Network Rail to get back around the table to negotiate a settlement to this dispute.”

ENDS

Posted on 12:36 AM | Permalink

The Northern Echo: 5th December 2009

A TRANSPORT union has criticised Tyne and Wear Metro bosses after they confirmed the door has been opened for the publicly-controlled network to be privatised.

Tynemouth metro station

Bob Crow, general secretary of the National Union of Rail, Maritime and Transport Workers, branded the decision by Nexus to hand over the running of the system to a subsidiary of German rail giant Deutsche Bahn from April next year as a “betrayal of the people of the North- East and electoral suicide in Labour’s heartland”.

Mr Crow said: “This is the first major privatisation under Gordon Brown’s leadership of the Labour Party.

“This is a disaster for Tyne and Wear which will be felt right across the region. We can expect this essential transport service to be bled dry in the dash for profits by the private company.”

Nexus confirmed the plans at a press conference at the Haymarket Metro station yesterday, but said it will continue to own Metro and will set fares and services directly.

Nexus hopes the plan will unlock more than £300m in capital funding towards modernisation projects, plus continuing operating subsidy over nine years.

The funding package from the Government is still to be agreed but Nexus expects it to be worth about £600m.

The Metro stop at Newcastle’s Central Station, which is used by five million people a year, will be rebuilt along the lines of Haymarket’s redevelopment.

Eleven stations between the city centre and South Gosforth, and between Byker and Tynemouth, will be refurbished as part of Metro: All Change.

New ticket machines and barriers to prevent fare-dodging will be put in at 13 of the busiest stations, Metro carriages will be refurbished and new track and cable laid.

Nexus said the investment, worth an estimated £2.5bn to the North-East economy over the next decade, would secure the future of the 30-year-old railway.

Bernard Garner, director general of Nexus, said: “We have achieved four things, subject to final approval of the Government.

“We have maintained local ownership and control of the Tyne and Wear Metro, we have met the conditions to secure more than £300m capital funding to modernise Metro, we have won significant improvements in service for passengers and, through investment, we will create scores of new jobs, while protecting the existing jobs, pensions and conditions of people who work on Metro now.”

See also:

Nexus reveal details £600million Metro overhaul

The Journal: Dec 5 2009
by Kim Carmichael,

Tynemouth metro station

PLANS have been unveiled for a controversial £600m overhaul of the Metro system.

Nexus, which yesterday announced it had agreed to allow a subsidiary of German company Deutsche Bahn to run the system, has now revealed details of what the multi-million pound budget will be spent on.

Central Station in Newcastle will be first in line for an upgrade, with passengers benefiting from a similar revamp to that at the city’s Haymarket station.

The 11 suburban stations from Tynemouth to Byker and South Gosforth to Newcastle city centre will also be improved.

Some 30 Metrocars will be refurbished in the next three years, with the rest of the 90-strong fleet to be upgraded in the longer term.

The entire system will benefit from new ticket machines, with 13 stations getting ticket control barriers.

Extensive refurbishment work to track, cabling and bridges will also take place.

Although concerns have been raised over the fact that DB Regio Tyne and Wear’s parent company is at the centre of a long-running safety row in Berlin, after a train derailment in May revealed that strict standards were not being met, Nexus yesterday sought to distance itself from the problems.

Nexus director general Bernard Garner said: “DB is a major international company with hundreds of subsidiaries.

“There is no connection between issues in Germany and operations in Tyne and Wear.

“We’ve made a major step forward in realising investment in the system. Metro now has greater financial security than at any time in its history and now we can plan long term for the future rather than from year to year as has been the case.

“We’re moving from the proud history of Metro and translating that into a better future, not only for Metro, but for transport in Tyne and Wear.”

Christoph Djazirian, bid director for DB Regio, said: “We have already proven our capability through our work with London Overground, using an approach of innovation, combined with tried and tested engineering and operational processes, which have made a sustained positive contribution to an improved customer experience.”

But union leaders and campaigners reacted have warned of the dangers they say the Metro system is now facing.

Kevin Flynn, secretary of Keep Metro Public, said: “Once driving profits becomes an issue, corners are cut and the shareholders come first and the staff and public second.”

Bob Crow, general secretary of the RMT union said he was deeply unhappy with the plans. He said: “This is the first major privatisation under Gordon Brown’s leadership of the Labour Party.

“It is a betrayal of the people of the North East who overwhelmingly oppose this plan and is electoral suicide for Labour, smack bang in its heartland.

“This is a disaster for Tyne and Wear which will be felt right across the region. We can expect this essential transport service to be bled dry in the dash for profits by the private company.

“This decision is a kick in the teeth for the vast majority of local people who have supported the campaign against privatisation.”

RMT local union leader Stan Herschel said he was worried about the welfare of Metro staff.

He said: “We hope to work with DB for our members and the public but are warning now that any attempt to erode pay and conditions will be vigorously defended.

“Nexus are a bunch of pirates and should hang their heads in shame.”

See also:

German firm to run Metro service

BBC News: 4 December 2009

Kevin Flynn, of the Keep Metro Public group, said the move is a disaster

Germany's DB Regio has been named as the preferred bidder to run trains and stations on the Tyne and Wear Metro.

The state-owned firm beat off an in-house bid to operate services for up to nine years from April 2010.

Owner Nexus was told to hive off parts of the publicly-funded network in return for a £300m investment.

Union leaders criticised the decision, claiming one of the area's "crown jewels" had been sold off despite delivering high levels of performance.

Nexus will continue to own all trains, set fares and co-ordinate improvements to the Metro's 60 stations.

'Wrong decision'

Bernard Garner, director general of Nexus, said: "This announcement marks the final stage in a comprehensive 15-month process.

"We have maintained local ownership and control of the Tyne and Wear Metro, we have met the conditions to secure more than £300m capital funding to modernise the Metro and through investment we will create scores of new jobs, while protecting the existing jobs.

"DB Regio (Tyne and Wear) Ltd is offering better customer service to our 40 million passengers a year, good value to the taxpayer and the best package of terms for staff."

Kevin Rowan, regional secretary of the Northern TUC said: "Trade Unions and the TUC are extremely disappointed and saddened by the decision.

"The fact is this has been a jewel in the crown of public services, with excellent delivery and performance, high customer satisfaction and a well-run service, all within the public sector.

"Both workers and the travelling public should be concerned about this decision, the government appear to have learnt nothing from botched and costly privatisations in the past.

"This is absolutely the wrong decision at absolutely the wrong time."

See also:

RMT BLASTS METRO PRIVATISATION PLANS

RMT: December 4 2009

TRANSPORT UNION RMT today blasted confirmation that the door has been opened for Tyne and Wear Metro to be privatised and handed over to a subsidiary of German rail giant Deutsche Bahn from April next year as a “betrayal of the people of the North East and electoral suicide in Labour’s heartland.”

NEXUS, the publicly controlled Metro operator, will confirm the plans at a press conference today for a takeover by preferred bidder, Deutsche Bahn subsidiary DB Regio, from the 1st of April 2010 but RMT and local campaigners have pledged to carry on the fight for public ownership of Tyne and Wear Metro.

Bob Crow, RMT General Secretary, said:

“This is the first major privatisation under Gordon Brown’s leadership of the Labour Party. It is a betrayal of the people of the North East who overwhelmingly oppose this plan and is electoral suicide for Labour bang, smack in its heartland.

“This is a disaster for Tyne and Wear which will be felt right across the Region. We can expect this essential transport service to be bled dry in the dash for profits by the private company.

“This decision is a kick in the teeth for the vast majority of local people who have supported the campaign against privatisation.

“RMT will continue to fight for public ownership of the Metro in the interests of our members who operate the service and the people of Tyne and Wear who use it. “

ENDS

Posted on 9:42 AM | Permalink

The FT reports (December 3 2009) that railway workers in South Korea called off their strike on Thursday, with the union buckling under pressure from pro-business President Lee Myung-bak, although the rail strike slashed freight transport.

Railworkers, supported by truckers, struck on November 26 cutting internal cargo shipments to less than a third of normal levels. President Lee vows to emasculate the unions which, he claims, deter foreign investment.

The railway workers’ union opposes Lee's privatisation plans, demands pay rises and reinstatement of sacked rail workers.

Seeking to outdo previous governments in his hostility to South Korean unions and to prove his loyalty to global capital, Mr Lee insists such strikes are illegal, sending Police to raid union offices. Mr Lee had already used riot police to break a 77-day strike at carmaker, Ssangyong Motor in August 2009.

State-run Korail broke off talks calling the union's demands unreasonable and brought in scab workers and military engineers to try to keep services running.

The union suspended the strike temporarily to regroup, but management say this is in effect a surrender.

The South Korean rail workers' union said in a statement; “We are calling on comrade members to briefly return to the workplace so we can prepare for a new strike. We have not been able to achieve our demands.”

Mr Lee wants to pass a mass of anti-union laws to stop companies keeping staff on their books as full-time union officers and to double the length of time a company can employ a worker on a temporary contract from two to four years.

See also:

South Korea rail workers call off strike

Reuters: Dec 3, 2009

SEOUL - South Korea's railway workers' union called off a strike on Thursday, buckling under pressure from the pro-business government of President Lee Myung-bak which refused to compromise even though the walkout slowed cargo transport.

State-run Korail had broken off talks with the union last week, calling its demands for a pay hike and reinstatement of fired members unreasonable. It has been using non-union workers and military engineers to try to keep services running.

The union said it was suspending the strike temporarily to regroup, but management said it was effectively a surrender.

"We are calling on comrade members to briefly return to the workplace so we can prepare for a new strike," the union said in a statement. "We have not been able to achieve our demands."

The government on Tuesday vowed there would be no compromise, calling the strike illegal.

The refusal to resume negotiations by management reflected the hard line against militant unions by Lee, who has pledged to end years of disruptive labour action he says is undermining South Korea's competitiveness.

In August, riot police were used to crush a strike at embattled Ssangyong Motor Co over a massive layoff plan. In the end, union leaders had to drop their key demands.

Organised labour, long a dominant and disruptive force in South Korean industry, is already bending under the impact of the economic downturn, a conservative government set on curbing what it considers investor-scaring ways, and scandals and mass defections at the Korea Confederation of Trade Unions (KCTU), a major labour federation.

The government is trying to push through legislation that will end the practice of companies having to pay union leaders, allow multiple unions in a single workplace and double to four years the period that firms can employ contract -- and usually non-union -- workers.

See also:

End of Strike

Korea Times: December 4, 2009

Crackdown on Unions Cannot Bring About Industrial Peace

After calling off an eight-day strike, the Korean Railroad's (Korail) labor union termed it a "half success''; Major newspapers dubbed it "an unconditional surrender.''

The truth is closer to the latter, as the union had to end the walkout without getting anything it had demanded, which is almost unprecedented. And the biggest reason is the union made a grave tactical mistake of underestimating the determination of the Korail management, and the government behind the state-run rail company ― particularly President Lee Myung-bak.

Another element that sets the latest labor strike apart from others is that it was actually "provoked'' by the management, which unilaterally terminated the existing collective agreement with the union. Such one-sided nullification of labor-management accords took place at 12 state-run or funded firms this year, with Korail being the biggest case.

Government officials might think ― if not loudly ― this is part of the Lee administration's policy campaign to "advance'' the nation's lagging labor-management relationship and "reform'' the inefficient public sector.

From the viewpoint of the nation's organized labor, this would be what they mean by "the audacity of the evil-doer,'' however.

What decisively weakened the Korail union's position was the cold response from the average citizens, not just by the commuting inconvenience but by the news the rail workers' average annual wage is 60 million won ($50,000). That could appear quite handsome compared with the national average, but therein lies the problem. Assuming the nation's per capita income is $15,000 at the least, a breadwinner of a family of four is supposed to make at least $60,000 a year, and that there are so many workers earning less than that only points to the extremely unbalanced redistribution structure of this country.

President Lee even went one step further, saying, "People cannot and should not understand walkout by workers who have been guaranteed lifetime employment.'' By this remark, the chief executive only revealed his problematic logical thinking (unemployed people cannot dream of staging strikes at all) as well as his utter lack of respect for the constitutional rights of people.

Yes, there are problems of a handful of labor aristocrats, especially at some large firms and state enterprises, often capitalizing on the weakness of managerial legitimacy at the top, whether they are tax-evading, slush fund-creating chaebol owners or state enterprise heads handpicked by the presidents themselves.

Let's look at the other side of the coin. One of the Lee administration's administrative slogans is "less government, more market,'' the outdated motto of neo-liberalists. But Korea's working hours are the longest in the 30 OECD countries, while its labor organization rate is third from last, forcing most of the workers to fight on their own against their employers. Add to these the bottom-ranked portion of government spending on public welfare, and one gets an inkling as to why its birthrate is the lowest and its suicide rate the second highest among OECD members. In short, Koreans have been fully thrown into the market with little aid from the already small government.

Korea is not even keeping its two promises made 13 years ago to the International Labor Organization ― allowing multiple unions at a single company and abolishing a rule that stops employers from paying wages to full-time unionists ― to join the so-called club of rich countries. Little wonder Seoul has ratified only 24 of the total 188 ILO agreements and ranked 128th out of the 183 ILO members, or 27th in the OECD.

The government is right in calling for the advancement of labor-management culture, but it should do far more than it is now to attain the goal, instead of cracking down on justifiable union activities by enlarging relatively small problems. It should at least be a fair and objective mediator between employers and employees rather than siding with the industrialists.

President Lee may succeed in maintaining an ostensible industrial peace through his tenure but it is a false calm, which will explode far more fiercely later, throwing away any economic legacy he might leave.

Reader’s Comments

fcia (99.27.203.182) 12-05-2009 07:19
LMB administration is holding off all labor issues for 2.5 to 3 years till he leaves the office. Another words, he's dumping garbage on the next administration rather than fixing the current problem today. On top of that...the mountain of national debt LMB has accumulated digging up the river...all dumped on the next generation of Korean while LMB will blame the next guy for anything that goes wrong. Classic politics 101.

Posted on 9:08 AM | Permalink

RMT blasted senior Network Rail chiefs as it emerged that they held meetings in the five star opulence of London’s Langham Hotel while multi-billion pound cuts have left 1500 essential safety maintenance staff facing the sack.

The Network Rail board met at the Langham Hotel on Wednesday – 2nd December – with the job cuts package one of the items under discussion.

On the hotels website it describes itself as “…a sublime choice among London luxury hotels…." and…. "impeccable 5-star luxury accommodation…” stating that ….”this luxury London hotel is the epitome of elegance and poise".

Bob Crow, RMT General Secretary, said:

"While 1500 emergency track maintenance staff face the prospect of being slung on the dole this Christmas, their Network Rail bosses are strutting around in the five star luxury of the Langham Hotel.

"The top bosses at Network Rail are making multi-billion cuts to the rail infrastructure with the maintenance jobs of RMT members in the firing line. At the same time they are paying out wads of cash to enjoy the opulence of the Langham Hotel. Our members are furious and will not take this insult without a real fight."

Posted on 8:41 PM | Permalink

RMT today accused TfL and Tube Lines of slashing safety standards to dangerous levels as it emerged that twice weekly inspection of escalators will be cut to just once a week and the 12 week frequency of signal maintenance on the Jubilee Line will be cut to a 16 week cycle.

The latest safety and maintenance cuts on the Tube Lines section of the Underground have come just two weeks after RMT exposed moves to hack back the frequency of track inspections on the Jubilee Line extension.

RMT reps will be raising the issues at a meeting of the Health and Safety forum today – Thursday 3rd December – with a demand that the cuts be reversed as a matter of urgency.

RMT have pointed out that one of the causes of the Kings Cross fire was a lack of regular escalator inspections. The union are also challenging the failure to consult with health and safety reps before the cuts were implemented, making a mockery of the agreed procedures.

Bob Crow, RMT General Secretary, said today:

“We are demanding the intervention of TfL Chair Boris Johnson to reverse the safety and maintenance cuts programme which is leaking out in dribs and drabs from Tube Lines.

“The Mayor told Londoners that the cuts on London transport would not hit passengers and front line services. These latest cuts, bulldozed through by Tube Lines without consultation, make a nonsense of those assurances. These are dangerous reductions in key maintenance and safety frequencies that will set alarm bells ringing for staff and passengers alike.

“There is a growing suspicion that the Tube Lines cuts are tied in closely with the financial turmoil facing the company and the massive gap between them and TfL on the value of the next phase of their contract. With the chaotic overruns on the Jubilee Line upgrade the time has come for TfL to pull the plugs on Tube Lines before we end up plunged into a re-run of the Metronet privatisation disaster.”

Further information:

Geoff Martin 07831 465 103

020 7255 9146

Posted on 6:14 PM | Permalink

BBC News: 2 December 2009

A railway worker has died after he was hit by a train just outside Leeds city station on Wednesday morning.

The accident happened at Whitehall junction in Wortley at about 0945 GMT as an empty train was returning to the depot, British Transport Police said.

Network Rail confirmed the casualty was one of its employees who was working on the tracks just west of the station.

He was taken to hospital but died from his injuries. A British Transport Police investigation is under way.

The Rail Accident Investigation Branch has also been informed.

Services out of Leeds station were disrupted after all lines heading south and west of the city were closed for a short time.

"We are working closely with our rail partners to establish the circumstances of the incident" - British Transport Police statement

They were all later reopened, with the exception of the Leeds to Shipley service which is expected to resume later.

A Network Rail spokesman said the train was not travelling at high speed at the time of the incident as it was just pulling out of the station.

It is not yet known what the worker was doing on the line.

British Transport Police said: "We are currently attending an incident at Whitehall Junction in Wortley, Leeds, after receiving reports of a train striking a person on the tracks at 9.44am.

'Transparent inquiry'

"We are working closely with our rail partners to establish the circumstances of the incident.

"The train involved was empty stock returning to the depot from Leeds."

Bob Crow, general secretary of the Rail Maritime and Transport (RMT) union, said: "This is a tragic incident and our thoughts are with the friends and family of our member who has lost his life doing his job.

"RMT will be playing a full role in the investigations into exactly how it happened.

"We will ensure that there is an open and transparent inquiry, that the full facts are established and that any appropriate action is taken as a consequence of those investigations."

Posted on 9:03 AM | Permalink