Rail strike companies in line for millions of pounds bailout

1 September 2018

RMT Press Office:

As guards strike again on Northern and South Western Railways RMT reveals companies in line for tens of millions pounds bail out ‎from taxpayer even if they don't run trains.

With guards striking again today on Northern and South Western Railways RMT has released parliamentary answers provided by the Rail Minister Jo Johnson which reveal that both German state owned Northern Rail and Hong Kong owned South Western Railway have applied to the government to be reimbursed for revenues they have lost as a result of not being able to run trains on strike days.

New RMT research has also revealed that on an average day Northern and South Western Railways combined would normally take £3.5 million in passenger revenues. On the basis that there have been a total of 39 strike days on Northern and South Western Railways, the cost to the taxpayer of this strike bailout will be tens of millions of pounds.

RMT General Secretary Mick Cash said,

“The Rail Minister Jo Johnson has now confirmed that both Northern and South Western Railway have applied to be bailed out by the tax payer for revenues loss on strike days. That is a national scandal when guards are taking action to defend safety, access and security on our railways.

“This actually means that these rail companies will be getting paid tens of millions by the tax payer for trains that are not running. This is truly shocking in itself but also an absolute kick in the teeth for passengers when these eye watering sums could instead be spent on improving services and cutting fares.

“There is no excuse whatsoever for these companies to be throwing guards off their trains in a dash to pump up their profits.

“And in a new low for Chris Grayling we now have the grotesque spectacle of the British Government paying German and Hong Kong owned rail companies to wage war on rail workers who are seeking to save decent safety critical jobs and the principle of a secure and accessible railway for all.”

ENDS