1 March 2022
RMT Press Office:
No cuts to Tube jobs and pensions
10,000 tube workers are taking strike action today, (Tuesday) after London Underground bosses refused to rule out job cuts and detrimental changes to pensions. RMT said that pickets are out in force at all key locations and that the action is being solidly supported the length and breadth of the tube network.
Under the plans at the heart of the dispute, LU will cut 600 frontline jobs for starters and wants to scrap the final salary pension scheme in a bid to drive down costs.
The Rail and Martime Transport union (RMT) has called for Mayor of London, Sadiq Khan to keep promises he made to LU workers.
He told Labour Party members last year: "Telling those people responsible for heroically keeping London moving throughout the pandemic that now is the time they need to pay more into their pension funds strikes me as neither fair nor reasonable. it is not their fault the pandemic struck and they have acted heroically."
The union also pointed out that in May last year, the Mayor also said that it would be "ill judged" to rush through pension changes, warning that it could lead to an industrial dispute.
Yet last week the government announced the Mayor had agreed by 31st March, he would submit proposals to the government to cut tube workers’ pensions.
RMT General Secretary Mick Lynch said:
“Sadiq Khan should be standing up to Tory ministers who want to needlessly attack jobs, pensions and conditions of key transport workers. It is this political failure that has left tube workers with no choice but to strike this week. Our members have been left paying the price for a turf war between City Hall and the Government and they are not having it as can be seen right across London today.
“The Mayor knows the plan to attack our members’ pensions and conditions is wrong and would leave our union no choice but to take industrial action.
"However, only last week the Mayor agreed to submit proposals to the government that will result in detrimental changes to pensions.
"The Mayor has to decide if he is on the side of key workers who have kept London moving during the pandemic or Tory ministers hellbent on punishing tube workers.
"This dispute can be solved if the Mayor meets the reasonable demands of his own workforce."
Notes for editors:
1. In October 2020, Sadiq Khan wrote to Labour Party members saying that ‘Telling those people responsible for heroically keeping London moving throughout the pandemic that now is the time they need to pay more into their pension funds strikes me as neither fair nor reasonable. it is not their fault the pandemic struck and they have acted heroically this year.’ Sadiq Khan, Labour Party briefing, October 2020)
2. In May 2021, Sadiq Khan wrote again to Labour Party members saying that he had “said clearly to the Government that it would be wrong and ill-judged to rush proposals for huge reforms to the pension schemes and conditions of TfL's key workers, who have done so much to keep our city moving during the pandemic. It could also lead to industrial action which would be extremely costly to our city's economy.”
3. As RMT has shown in its latest briefing, there is no financial crisis in the TfL pension scheme and it is currently fully funded, a position that’s likely to be confirmed at its valuation:https://www.rmt.org.uk/news/publications/rmt-policy-briefing-lul-strike-action-march-2022/?preview=true
4. The DfT’s press release from Friday states that “In this funding settlement, the Mayor will consult on the options he believes will raise between £500 million and £1 billion of additional yearly revenue from 2023. He will also be outlining options to achieve operating cost savings of up to £400 million in 2022 to 2023 and delivering against TfL’s accelerated modernisation plan while making significant progress in moving the pension fund into a financially sustainable position.” (https://www.gov.uk/government/news/government-agrees-200-million-deal-to-keep-vital-transport-for-london-services-running. The accompanying email states that ‘Within this next funding period the Mayor has agreed to…Make significant progress in moving the Pension Fund into a financially sustainable position”. In its Extraordinary Funding Letter, Grant Shapps says that: “As part of the review of TfL’s pension scheme, TfL will deliver a final report, including a recommended approach and implementation plan by no later than 31 March 2022. During the remainder of the Fourth Funding Period, TfL will consider and progress, as appropriate, any proposals that may be recommended by the final report in order to move the Fund into a financially sustainable position. TfL will be expected to provide regular substantive progress updates as well as a detailed work plan setting out the steps it intends to take to deliver the reports by the relevant deadlines.” The funding letter also makes it clear that any long-term capital funding for TfL Is dependent on delivering thee cuts and the pension reform: “HMG is also willing to consider a long-term capital funding settlement as set out in paragraph 9 to help TfL in achieving financial sustainability as soon as possible. Provided that TfL complies with the terms of this letter and through positive engagement, we hope to agree such a long-term deal before the end of the current financial year”. –(https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1057532/TfL-extraordinary-funding-and-financing-settlement-letter-25-February-2022.pdf)
5. London Underground is planning to cut 600 station staff jobs (https://www.itv.com/news/london/2021-12-07/london-underground-to-axe-up-to-600-station-staff-jobs) – As RMT’s latest briefing shows, TfL knows that this is the wrong move and will damage passenger safety and confidence:https://www.rmt.org.uk/news/publications/rmt-policy-briefing-lul-strike-action-march-2022/?preview=true
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