19 November 2024
RMT Press Office:
RMT has criticised the decision to reprivatise the Elizabeth Line after GTS Rail Operations Limited won a bid to run the London rail service.
GTS was awarded the lucrative contract, meaning that profits will leave the capital and subsidise shareholders making millions at the expense of Londoners.
The union also warned Mayor of London Sadiq Khan that he is creating an "island of privatisation" within London's rail network at a time when much of the UK's railway is transitioning back into public ownership.
Last year, the Elizabeth Line saw £7.6 million in private dividends flow out of the network—an amount equivalent to a 2.4% reduction in passenger fares.
Continuing down the privatisation path risks further short-changing passengers and undermining the financial sustainability of the capital’s transport system, said the union.
RMT General Secretary Mick Lynch said: "It is deeply concerning that while other parts of our rail network are being brought back into public hands, the Elizabeth Line is being left to funnel profits to private operators.
"This approach prioritises corporate shareholders over London’s passengers and workers, and it's a missed opportunity to reinvest every penny into improving services and keeping fares affordable."
Despite these concerns, RMT has welcomed previous assurances that the new contract would include break clauses, giving the Mayor of London the flexibility to bring the Elizabeth Line, and potentially London Overground, back into public ownership.
Mr Lynch added:
"The Mayor must act on the opportunity to bring the Elizabeth Line and London Overground under direct public control as soon as possible. The public overwhelmingly supports public ownership of the railways, and we will continue to campaign to ensure these vital services work for Londoners, not foreign shareholders or private equity firms."
END
Notes: GTS Rail Operations Limited is a joint venture comprising three key partners: Go Ahead Holdings Limited, owned by Australia’s Kinetic and Spain’s Globalvia, which is backed by three pension funds including USS; Sumitomo Corporation, a private Japanese company; and Tokyo Metro Co. Ltd, a Japanese state-owned metro operator.
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