Alstom has warned Derby City Council that it intends to end the building of trains in the city. The news follows fears that more than 1300 workers, or two-thirds of the employees, were set to lose their jobs because of a lack of new orders. It has now emerged that Alstom is planning to go further by ceasing to build rolling stock at Litchurch Lane, bringing to an end a tradition in Derby which goes back to 1840. The decision raises a question mark over where Alstom will now play its part in building trains for HS2, in conjunction with Hitachi. Derby Council leader Baggy Shanker said: ‘We've been informed by Alstom this morning that after months of talks with Government, they must now plan to end the production of rolling stock within the city and will be starting a redundancy consultation affecting Derby manufacturing staff, coinciding with the end of current projects. ‘The Litchurch Lane factory site is a unique asset for Derby and the UK and we understand the impact these supply chain job losses will have on our residents and the wider region. ‘We’ve been working closely with Alstom, Unite and senior Government officials to explore potential resolutions to the current situation since the announcement of possible job cuts back in September and we're saddened to hear that a solution has not yet been possible. Minsters really need to commit and focus on this vital industrial sector. To date I’m disappointed that no Minister has agreed to speak to us on this matter. ‘The rail sector is immensely important to the city, and was recognised earlier this year with Derby being named the home for the new Great British Railways headquarters. ‘We stand with Alstom and their workers during this disappointing time and continue to support wherever we can.’ The Rail Forum, which is based in Derby, said: ‘The approach to rolling stock procurement has led to the current scenario of “feast and famine” and we are already seeing redundancies at suppliers as their work dries up. We have raised our concerns with government and the Department for Transport on a number of occasions over the last year as this situation was, sadly, predictable.’ If Alstom’s decision goes ahead, it will also mean the closure of the last traditional train-building works in Britain. Hitachi’s site at Newton Aycliffe and CAF’s at Newport in south Wales have both been opened during the last few years.
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ASLEF calls drivers out on strike again
Updated 10.57 ASLEF has announced a series of strikes by train drivers between 2 and 8 December, in its continuing dispute over pay. Unlike previous walkouts, the strikes will affect different operators in England each day, but there will also be a general overtime ban from 1 to 9 December. ASLEF general secretary Mick Whelan said: ‘Our members have spoken and we know what they think. Every time they vote, and they have voted overwhelmingly, for strike action in pursuit of a proper pay rise it is a clear rejection of the offer that was made in April.’ The drivers’ union has already staged 14 daily strikes since the dispute began in the spring of last year. It described the last pay offer, which was made some six months ago, as ‘risible’. The Rail Delivery Group said: ‘This wholly unnecessary strike action called by the ASLEF leadership will sadly disrupt customers and businesses ahead of the vital festive period, while further damaging the railway at a time when it is still getting an extra £175 million a month in taxpayer cash. ‘The fair and affordable offer made by industry, which would take average driver base salaries for a 4-day week from £60,000 to nearly £65,000, remains on the table. We urge the ASLEF leadership to put it to its members, give Christmas back to our passengers, and end this damaging industrial dispute.’ The Department for Transport added: ‘It is disappointing that ASLEF are targeting the public and hospitality businesses at the beginning of the festive period, when there is a fair and reasonable pay offer for train drivers on the table that would take their salary up to an average of £65,000 for a 35-hour, four-day week. ‘Taxpayers contributed £1000 per household to protect train drivers’ jobs during the pandemic. Instead of going on strike, ASLEF should be following in the footsteps of the other rail unions and giving their members a vote on this fair pay deal.’ The walkouts will affect East Midlands Railway and LNER on 2 December; Avanti West Coast, Chiltern, Great Northern, Thameslink and West Midlands Trains on the 3rd; c2c and Greater Anglia on the 5th, Southeastern, Southern, Gatwick Express, South Western Railway main line, SWR depot drivers and Island Line on the 6th; CrossCountry and GWR on the 7th and Northern and TransPennine Express on the 8th. The strike call has come at a time when the separate dispute involving the RMT could be coming to an end. A vote on the latest pay offer is currently under way, and will close on 30 November.
Alstom shares plunge as Derby job losses increase
The number of jobs which could be lost in Derby because of the Alstom crisis has more than doubled. Earlier reports suggested that 600 jobs could be shed because of a lack of orders, but it is now feared that more than 1300 workers could be laid off. In a statement issued a short time ago, Alstom said it is set to cut 1500 jobs worldwide. The company is facing a wider cash crisis. It says it is planning to raise money by selling assets worth up to one billion Euros and may also increase its capital to help its balance sheet. The markets have reacted badly, with the value of Alstom shares falling by 16 per cent since stock exchanges opened this morning. Litchurch Lane in Derby is running out of orders. Current projects include the Class 730 Aventra fleet for West Midlands Trains and a monorail in Egypt, but work on these will be completed in 2024. A likely reduction in size of the HS2 fleet is one problem, following the cancellation of the West Midlands to Manchester section last month by the Prime Minister. Alstom is to build the high speed trains in conjunction with Hitachi, but construction is not due to begin until 2026. Another threat is the lack of forthcoming orders for conventional lines in Britain. It now seems that 780 agency staff could lose their jobs, along with 550 permanent employees. If these losses went ahead, the current workforce would be more than halved. Alstom said it has been working with the UK government over the last six months to achieve a ‘sustainable future’ for the Derby factory, which it acquired when it took over Bombardier in 2021. Alstom’s statement continued: ‘No committed way forward has yet been found and therefore it is with deep regret that we must now begin to plan for a significant reduction in activity at Derby by entering a period of collective consultation on potential redundancies at Litchurch Lane. ‘We will fully support our dedicated colleagues during this exceptionally difficult time. We look forward to fulfilling our commitments on HS2 and successfully competing for rolling stock opportunities across the UK in the future. ‘We remain open-minded as to the future of non-production functions located at Litchurch Lane and to potential future alternative uses for the Derby site. ‘We will begin an extensive review of options, and will fully involve our stakeholders in this process.’
Government to fund Bradford station planning
Money to pay for the first stage of work on a new station for Bradford has been announced, following the publication of the Network North proposals last month. The Network North schemes cover most of the country, and include projects in Devon and Cambridgeshire as well as the north of England. The government said last month that it would be investing £36 billion in the ‘long term’ schemes, which would include road improvements as well as railways and a new tram system for Leeds, all funded by money released from the cancellation of HS2 to Crewe and Manchester. Department for Transport permanent secretary Dame Bernadette Kelly has pointed out that HS2 between the West Midlands and Crewe cannot be abandoned without a further Act of Parliament, and the £400,000 allocated to Bradford comes from the previously announced West Yorkshire Devolution deal. The Network North proposals include £2 billion for Bradford’s new station, although it is not yet known where it will be built, or on what line. For now, the initial grant will fund the preparation of a master plan for the station by the council. The DfT said the work will examine how the new station can support regeneration and make the most of its potential to create new homes, jobs and economic growth. Once complete, the findings will form part of a wider business case for the project which will include details of the proposed location and opening date. Rail minister Huw Merriman said: ‘I have championed the case for a new railway station in Bradford for a long time and the funding announced today will make this commitment one step closer to becoming a reality. ‘Bradford is soon to become the UK's City of Culture and our scheme to deliver a brand new station and railway line will help attract tourism, unlock access to neighbouring cities and provide the area with the huge regeneration opportunities it deserves to boost connectivity and economic growth.’
Fears grow over security of hundreds of jobs at Alstom
The first Class 730 electric units built by Alstom in Derby went into service with London Northwestern Railway this morning, when two three-car sets coupled in multiple worked the 06.04 from Bletchley to London Euston. But the launch has been overshadowed by reports that 600 jobs are set to be lost in Derby after the Prime Minister announced that HS2 will not be built to Crewe and Manchester at the Conservative Party conference on 4 October. Alstom is preparing a statutory consultation which will pave the way to shedding almost a third of the 2000-strong workforce at Litchurch Lane, according to The Times. Talks with unions are understood to be taking place this week. It is expected that most of the job losses will affect agency workers rather than established staff. There had been concern for several weeks that jobs at Litchurch Lane were at risk, after the Prime Minister’s decision implied that fewer trains will be needed for the High Speed line between London and Birmingham, which is still under construction. The HS2 fleet is to be built by a joint venture of Alstom and Hitachi. Even before the announcement about HS2, Derby City Council had sought talks with Alstom over the possibility that jobs were being put at risk because future train orders were being delayed. On 12 September, Derby City Council leader Baggy Shanker said: ‘The Litchurch Lane factory site is a unique asset for Derby and we understand the impact these job losses will have on our residents and the wider region. ‘As a Council, we’re ready to play our part and urge the Government and unions to work closely with Alstom to ensure a sustainable future for the factory, which would not only benefit the thousands of staff at the site, but many more across the local supply chain.’ Meanwhile, the new three-car Alstom Class 730/0s are only being used on the West Coast Main Line for now. They will be moved to local services in the West Midlands when the five-car Class 730/2s are delivered next year. The three-car 730s will next be seen between Walsall and Wolverhampton, early in 2024. The eventual fleet of 82 trains will consist of 324 vehicles. Some of the 730/2 five-car sets will also be worked in multiple as 10-car trains.
Monday essay: railway growth has returned
New figures released by the Office of Rail and Road show that passenger figures are continuing to recover since the Covid pandemic. Altogether 390.2 million journeys were made on National Rail between 1 April and 30 June this year, which the ORR points out was 19 per cent higher than the total of 327.6 million recorded in the same quarter last year. In the same quarter in 2019, before the pandemic, there were 437.5 million journeys, which indicates a shortfall between now and then of 10.86 per cent. But ASLEF staged strikes on 12 and 31 May and also on 3 June, while RMT members walked out on 13 May and 2 June. In addition, ASLEF imposed overtime bans on 13 May, from 15 to 20 May, and also on 1 June. As June began, industrial tensions remained high. ASLEF drivers voted on the 15th in favour of further strikes, while a few days later the union announced another overtime ban to run from 3 to 8 July, and the RMT called more 24-hour strikes on 20, 22 and 29 July. This combination of actual disruption and reports of more to come must have put off many potential rail travellers between 1 April and 30 June. It is not possible to say exactly how many passengers were deterred, but with annual totals running at about 1.4 billion, we might estimate that at up to four million journeys a day were lost during industrial action. Taking the strikes between April and June alone, that suggests the passenger totals for that quarter might have been reduced by something like 20 million. If the strikes had not happened, the theoretical total could therefore have been more like 410 million. This is admittedly very broad brush, but 410 million is only about 6 per cent less than the 2019 figure we have already mentioned. In other words, it seems that 94 per cent of passengers have (or would have) returned in the first quarter of this railway year. Passenger kilometres and revenue are also rising, as you might expect. Passenger kilometres between April and June this year amounted to 14.9 billion, which was a 10 per cent increase on the 13.5 billion in the same quarter in the previous year. Passenger revenue for the same quarter was £2.6 billion. This total was 10 per cent more than the £2.3 billion in the same quarter in the previous year, adjusted for inflation. How do these figures compare with April-June 2019? Passenger kilometres then were 17.3 billion and revenue was £3,291 million, but as with the passenger figures, the gap between 2019 and 2023 is continuing to close. Hull Trains has recorded that the number of passengers using its services compared with 2019 is 28 per cent higher. LNER has also bounced back, and has been doing so for some time. As long ago as October to December last year, its passenger journeys were 96 per cent of the total for the same period in 2019, and the total for April-June this year was 6.4 million, compared with 5.7 million in April-June 2019. This looks like more than recovery. It is growth.
Friday briefing: Passenger figures rise
A total of 390 million journeys were made by train between 1 April to 30 June, according to the ORR. Journey totals are slightly inflated because each leg of a passenger’s trip is counted separately, but even so the total is 19 per cent higher than in the same quarter between April and June last year. Revenue was £2.6 billion in the latest quarter, and this total was 10 per cent higher than it was a year earlier, after inflation is taken into account. Underground workers approve more strikes Members of the RMT at London Underground have voted in favour of continuing strikes in the dispute over job security, conditions of employment and pensions. The union said there had been a turnout of 54 per cent, and 95 per cent of those votes were in favour of continuing action. When all members were taken into account, 52 per cent supported more strikes. The union said it would ‘now consider its next steps’. Trains set to return on landslip line Train services in West Yorkshire are expected to return to normal on Monday after a collapsed wall caused a landslip in Dewsbury two days ago. The crack in part of a retaining wall that runs alongside the railway south of Dewsbury station is several metres wide, and the line towards Huddersfield had to be closed. Some trains are being diverted while engineers repair the damage. Marston Vale Line to reopen Trains will start running again on 20 November between Bedford and Bletchley on the Marston Vale Line. London Northwestern Railway has been providing buses on the route since Vivarail went into administration in late 2022, when LNW withdrew the Vivarail Class 230s. Three Class 150 diesel units have been acquired from other lines.
Thursday briefing: Midland Main Line reopens after urgent embankment repair
The normal train service on the Midland Main Line between Kettering and Leicester has been restored, after a six-day closure to allow an embankment south of Market Harborough to be stablised. Network Rail engineers worked day and night to install soil nails into the side of the embankment, and then added netting which was tensioned to strengthen the affected area. After tests to make sure the repair had worked, more ballast was laid and the tracks repaired. Airport station The modernised and enlarged station at Gatwick Airport will open on 21 November, said Network Rail. The station has gained a second concourse, eight new escalators and five new lifts. Stairways and platforms have also been widened. Tri-mode fleet CAF has been named as the successful bidder to build 10 tri-mode trains for LNER. The fleet will be leased from Porterbrook, and will be able to run in 25kV, diesel and battery modes. Remembrance Day travel Several operators are offering free rail travel for service personnel travelling to Remembrance Sunday services.Those wearing an armed forces uniform and carrying a military identification card, as well as cadets in uniform and veterans who display valid identification such as the Ministry of Defence issued Veteran's Badge, will qualify. Licensed poppy sellers are also included.
New hope for industrial peace on railways
The RMT and the Rail Delivery Group have announced what appears to be a major step forward in resolving the long-running industrial dispute over pay and conditions. New offers will now be subject to ballots of RMT members at the train operating companies still involved in the dispute, which are most of those in England. The RMT has described the new understanding as a ‘welcome development’. The RDG said: ‘Following further negotiations between RDG and RMT, a Memorandum of Understanding on the current dispute has been developed which sets out a process for a mutually agreed way forward, including a backdated 2022 pay rise for staff and job security guarantees. ’This will now be put to RMT members in each of the Train Operating Companies in a referendum vote. If accepted, this MOU will terminate the national dispute mandate, creating a pause and respite from industrial action over the Christmas period and into Spring next year, while allowing for these important negotiations on proposed reforms to take place at local train operating company level, through the established collective bargaining structures. ‘These discussions would be aimed at addressing the companies' proposals on the changing needs and expectations of passengers as well as unlocking further increases for staff, in order to help to secure a sustainable, long-term future for the railway and all those who work on it.’ The RMT said: ‘If accepted, this MOU will terminate the national dispute mandate, creating a pause and respite from industrial action over the Christmas period and into Spring next year, while allowing for these important negotiations on proposed reforms to take place at local train operating company level through the established collective bargaining structures. ‘These discussions would be aimed at addressing the companies' proposals on the changing needs and expectations of passengers as well as unlocking further increases for staff, in order to help to secure a sustainable, long-term future for the railway and all those who work on it.’ RMT general secretary Mick Lynch added: ‘This is a welcome development and our members will now decide in an e-referendum whether they want to accept this new offer from the RDG.’ The Department for Transport responded: ‘We welcome the RMT putting this fair and reasonable offer to its members in a referendum, marking a positive step towards resolving this dispute. ‘The Rail Delivery Group’s offer guarantees no compulsory redundancies and a fair pay rise, while ensuring we can take forward much-needed reform to secure the future of our railways. We hope RMT members will recognise the benefits, accept this offer and put an end to the RMT’s industrial action.’ However, this development does not affect the separate dispute between the drivers’ union ASLEF and most train operators in England, which continues.
Great British Railways included in King’s Speech
Updated 13.25A draft Rail Reform Bill which would set up the new ’guiding mind’ Great British Railways has been included in the King’s Speech in the House of Lords today. Briefing notes which have been published by the Government say: ‘Given the scale and complexity of the changes being made to the sector, it is right that the draft Bill undergoes pre-legislative scrutiny to provide Parliamentarians and experts across industry the opportunity to review and test the legislation in draft. This will allow for a swifter passage through Parliament when the legislation is brought forward.’ But the Bill’s draft status has disappointed some observers in the rail industry. Lobbying group Rail Partners’ chief executive Andy Bagnall said: ‘The recommitment to establishing Great British Railways with the publication of a draft bill is a step forward, but it is a missed opportunity to not actually legislate in this Parliament. ‘The rail industry has been awaiting progress on reform since the Williams Review started over five years ago, culminating in the Plan for Rail being published in 2021. Delivering that plan remains the best foundation to build a better railway for Britain, and not seizing the moment now means continuing uncertainty until after the next General Election.’ Norman Baker, from the charity Campaign for Better Transport, said: ‘We welcome the renewed commitment to Great British Railways as a guiding mind and arms-length body but it is not clear why this is a draft Rail Reform Bill rather than a commitment to legislate given this has already been subject to extensive discussion and is largely non-controversial across all the political parties.’ Former Strategic Rail Authority chairman and chief executive Richard Bowker told the PA press agency: ‘I am genuinely struggling to see why it is so complex that, two-and-a-half years since the Williams-Shapps plan was announced, we’re still only at this point. ‘Anything that moves us towards a world where government officials have less to do with the day-to-day running things is good news, but why so slow? Time is really of the essence. What have you been doing for two-and-a-half years? ‘There’s no doubt that, if you have a disrupted, unreliable railway, it affects people’s willingness to travel. ‘We’ve got to get this industrial relations issue resolved, and we’ve got to get back to absolute basics in terms of running a boring, reliable railway. ‘Anything that resolves the issues of today and starts getting the basic things right, we’ve got to get on with it fast, because if we’re not careful, people will lose faith.’ Railway Industry Association chief executive Darren Caplan said: ‘The Railway Industry Association and 70 of our members campaigned on this earlier this year, writing to Prime Minister Rishi Sunak, about the need to take the establishment of Great British Railways forward, to provide some certainty about rail restructure and avoid hiatus in decision-making. ‘And so whilst we would have wanted a full Transport Bill providing for GBR, today’s inclusion of a Draft Bill does seem to be progress and a statement of Government intent to reform rail, ultimately bringing track and train closer together, and developing a “guiding mind” and a long-term plan for the railways. We urge the Government to begin the pre-legislative scrutiny process without delay.’ Urban Transport Group director Jason Prince said: ‘Many of the much-needed transport laws promised in the current Parliamentary session have once again failed to materialise. Although we welcome the prospect of a new Automated Vehicles Bill, it is disappointing that the Government has only presented a draft Rail Reform Bill, effectively leaving any prospect of reform this side of the General Election stuck in the sidings.’
