• Our booking engine at tickets.railforums.co.uk (powered by TrainSplit) helps support the running of the forum with every ticket purchase! Find out more and ask any questions/give us feedback in this thread!

Poor pay offer to send GWR and LNER trains off the rails

geoffk

Established Member
Joined
4 Aug 2010
Messages
3,306
"Trains across England and Wales could be forced to remain in the sidings as Unite members employed by Hitachi Rail are balloted over industrial action. Over 300 members who work as technicians, maintenance crews and engineers at Hitachi Rail Ltd are being balloted after they were offered just a 5.5 per cent pay increase - a real term pay cut when inflation is taken into account."

This from the Unite Union website today. Does Unite have many staff in the rail industry? I'm a bit out of touch but see they were formerly the T&GWU.

 
Last edited by a moderator:
Sponsor Post - registered members do not see these adverts; click here to register, or click here to log in
R

RailUK Forums

DanNCL

Established Member
Joined
17 Jul 2017
Messages
4,404
Location
County Durham
If this action went ahead it wouldn’t just impact GWR and LNER, it would also impact TPE, Hull Trains and Lumo. Depending on the sites in question possibly also HS1.
 

Bantamzen

Established Member
Joined
4 Dec 2013
Messages
9,836
Location
Baildon, West Yorkshire
The current inflation rate is 5.6% so whilst this offer is technically below the rate of inflation 5.5% can hardly be described as "poor". And it is pretty much in line with what many other workers are getting, so I'm not entirely sure why Unite think that Hitachi's staff are worth more.
 

185

Established Member
Joined
29 Aug 2010
Messages
5,077
The current inflation rate is 5.6% so whilst this offer is technically below the rate of inflation 5.5% can hardly be described as "poor".
Never before have I observed fitters leaving to work as guards. That is a sign that a reasonably skilled trades pay has been dipping for some time. Good on them.
 

JonathanH

Veteran Member
Joined
29 May 2011
Messages
19,163
The current inflation rate is 5.6% so whilst this offer is technically below the rate of inflation 5.5% can hardly be described as "poor". And it is pretty much in line with what many other workers are getting, so I'm not entirely sure why Unite think that Hitachi's staff are worth more.
If the date of the settlement is earlier this year and the dispute has been ongoing for a while, the current rate of CPI isn't necessarily relevant, but instead RPI at the reference date, which will have been higher before inflation rates started to reduce. They may also be taking into account pay settlements in previous years.

Is there an automatic ratchet for Agility Trains in their contract with the operators?

(For the avoidance of doubt, I am not expressing an opinion about what they should be pressing for, but just suggesting a reason why the union may think the offer isn't enough.)
 
Last edited:

Snow1964

Established Member
Joined
7 Oct 2019
Messages
6,647
Location
West Wiltshire
Unite are being very selective with their data quotes. They have used extracts of the published accounts, note 7

Note 7 actually says wages and salaries £162.3m (£139.5m in 2022). Employee numbers 2705 (2558 in 2022), which is exactly a 10% pay rise per employee last year

Can also work out the average employee gets salary of £59,995 plus £5563 company pension contribution, so average package over £65k

I am all for the unions protecting the poorly paid, or for doing a fair job at looking after better paid employees, but the way they are presenting this as the employees need extra pay to cover basic cost of living rises annoys me.

Link to Accounts used filed 20th November 2023

 

Goldfish62

Established Member
Joined
14 Feb 2010
Messages
10,265
Given Hitachi's lamentable performance with GWR and LNER I'd have thought a case for termination can't be far off (as GWR has already done with the 802s). Transfer maintenance to the operators. Problem solved.
 
Joined
7 Jan 2009
Messages
875
Er... problem transferred, surely? Would a Unite-recognised workforce employed FGW/LNER be any different from the same workforce for Hitachi being any different? If so, why?
 

Clarence Yard

Established Member
Joined
18 Dec 2014
Messages
2,539
GWR hasn’t terminated anything with the 802 fleet. It effectively acts as a sub contractor to Hitachi when it carries out any maintenance at Laira or Long Rock.

The Hitachi fleets are on a Train Supply contract, not a lease, and GWR/LNER don’t have any rights to transfer maintenance to themselves.

Unite, through mergers, picked up the two main craft unions that skilled depot workers traditionally belonged to, those two covering the fitters and electricians. So they will have several members at train maintenance depots.
 

Goldfish62

Established Member
Joined
14 Feb 2010
Messages
10,265
Er... problem transferred, surely? Would a Unite-recognised workforce employed FGW/LNER be any different from the same workforce for Hitachi being any different? If so, why?
If Unite were in dispute with TOCs over maintenence staff I'd say no, but they're not. It would provide a clean slate.

GWR hasn’t terminated anything with the 802 fleet. It effectively acts as a sub contractor to Hitachi when it carries out any maintenance at Laira or Long Rock.
Thanks for the correction - having looked it up you're quite right.

The Hitachi fleets are on a Train Supply contract, not a lease, and GWR/LNER don’t have any rights to transfer maintenance to themselves.
So you're saying that although the GWR Class 802s aren't under the Agility Trains contract the conditions of that contract apply to that fleet? Clearly an arrangement that's not fit for purpose!
 
Last edited:

Turtle

Member
Joined
18 Mar 2013
Messages
316
The current inflation rate is 5.6% so whilst this offer is technically below the rate of inflation 5.5% can hardly be described as "poor". And it is pretty much in line with what many other workers are getting, so I'm not entirely sure why Unite think that Hitachi's staff are worth more.
Thank you Mark.
Your comments are noted.
 

greatkingrat

Established Member
Joined
20 Jan 2011
Messages
2,805
If Unite were in dispute with TOCs over maintenence staff I'd say no, but they're not. It would provide a clean slate.
They have been in dispute with TOCs though, any directly-employed maintenance staff will have had the same lack of pay rises as drivers/guards etc.
 

Goldfish62

Established Member
Joined
14 Feb 2010
Messages
10,265
They have been in dispute with TOCs though, any directly-employed maintenance staff will have had the same lack of pay rises as drivers/guards etc.
Unite members settled at the same time as the TSSA, about a year ago.
 

43066

Established Member
Joined
24 Nov 2019
Messages
9,687
Location
London
Never before have I observed fitters leaving to work as guards. That is a sign that a reasonably skilled trades pay has been dipping for some time. Good on them.

Same is happening with fitters where I am, and they have had limited strike action, albeit now resolved.

On the positive side, unlike the TOC dispute, this is a negotiation with an employer who won’t have access to unlimited tax payers’ funds to continue the dispute for political purposes, so is much more likely to be resolved without strike action being needed.
 

Bantamzen

Established Member
Joined
4 Dec 2013
Messages
9,836
Location
Baildon, West Yorkshire
Same is happening with fitters where I am, and they have had limited strike action, albeit now resolved.

On the positive side, unlike the TOC dispute, this is a negotiation with an employer who won’t have access to unlimited tax payers’ funds to continue the dispute for political purposes, so is much more likely to be resolved without strike action being needed.
Unlimited tax payers funds? Are you sure about that, can you offer some evidence of these unlimited funds? I know as a taxpayer mine are certainly limited, although to be fair the price of some rail travel can feel like we must have unlimited funds...
 

Nicholas Lewis

Established Member
Joined
9 Aug 2019
Messages
6,251
Location
Surrey
Same is happening with fitters where I am, and they have had limited strike action, albeit now resolved.

On the positive side, unlike the TOC dispute, this is a negotiation with an employer who won’t have access to unlimited tax payers’ funds to continue the dispute for political purposes, so is much more likely to be resolved without strike action being needed.
On a contract of this length there will be some annual contract price adjustment to reflect inflation depends what index they have used so they will have had access to taxpayer funds and probably a lot more than the TOCs get.
 

Silenos

Member
Joined
13 Dec 2022
Messages
309
Location
Norfolk
???

What are you blithering on about? I can assure you my name is not Mark...
I imagine the responder is implying that you are parroting the government line and suggesting that you are the Secretary of State for Transport
 

riceuten

Member
Joined
23 May 2018
Messages
547
There's a kind of depressing predictability to threads around industrial disputes, that will always end with a broad assessment of the usefulness of the staff concerned and whether they are "greedy" or "overpaid", usually with the implicit indication that "they should be happy they have a job".
 

Silenos

Member
Joined
13 Dec 2022
Messages
309
Location
Norfolk
There's a kind of depressing predictability to threads around industrial disputes, that will always end with a broad assessment of the usefulness of the staff concerned and whether they are "greedy" or "overpaid", usually with the implicit indication that "they should be happy they have a job".
Yes, which is strange, really. For those people broadly on the right of politics, and in favour of capitalism and a market economy, you would think that a group of staff marketising their skills and labour to maximise their income would be a good thing, not a bad one
 

43066

Established Member
Joined
24 Nov 2019
Messages
9,687
Location
London
Unlimited tax payers funds? Are you sure about that, can you offer some evidence of these unlimited funds? I know as a taxpayer mine are certainly limited, although to be fair the price of some rail travel can feel like we must have unlimited funds...

I was referring to tax payers as a collective, not you as an individual.

On a contract of this length there will be some annual contract price adjustment to reflect inflation depends what index they have used so they will have had access to taxpayer funds and probably a lot more than the TOCs get.

Yes as far as the contract pricing works, but beyond that the government isn’t going to instruct Hitachi not to negotiate with the union, and then use taxpayers’ funds (which are indeed unlimited, or at least uncapped) to indemnify them for losses due to IA.

Hence in this dispute all parties will have strong incentives to reach agreement, and face real commercial jeopardy if they fail to do so, thus it’s unlikely to rumble on for eighteen months and counting. That’s surely a good thing for all concerned.

I don’t want to get into the same old arguments, so I won’t say another word on the matter!
 

Bantamzen

Established Member
Joined
4 Dec 2013
Messages
9,836
Location
Baildon, West Yorkshire
I imagine the responder is implying that you are parroting the government line and implying that you are the Secretary of State for Transport
Well then the responder is very wrong. I am just a regular user of the railway who is getting increasingly fed up of the various parts of the industry that think they deserve so much more than everyone else, yet seem to manage to deliver a worsening product. Now I realise that is a controversial point of view, but as a user of the product it is exactly how I feel, and I suspect I'm not alone especially given that the industry has had to be bailed out time and again by the taxpayers.

There's a kind of depressing predictability to threads around industrial disputes, that will always end with a broad assessment of the usefulness of the staff concerned and whether they are "greedy" or "overpaid", usually with the implicit indication that "they should be happy they have a job".
When a dispute starts with the premise that a higher offer than many other people around got or could hope for is "poor", then yes some people might question it. And it is probably worth remembering at this point that companies tend to pass on their costs to the end users. So if, for example Hitachi staff got a well above inflation pay rise, that would be passed onto the customers, in this case the TOCs or leasing companies. They would then eventually pass the cost onto the end users, us poor schmucks that still use the railways. Which is why sometimes people question these disputes.

Quite honestly if the industry wants better pay, then give us a better product and we might even be willing to pay for it..

I was referring to tax payers as a collective, not you as an individual.
I know what you were referring to, and I also know that you know tax income is not unlimited.
 

Nicholas Lewis

Established Member
Joined
9 Aug 2019
Messages
6,251
Location
Surrey
Unite are being very selective with their data quotes. They have used extracts of the published accounts, note 7

Note 7 actually says wages and salaries £162.3m (£139.5m in 2022). Employee numbers 2705 (2558 in 2022), which is exactly a 10% pay rise per employee last year

Can also work out the average employee gets salary of £59,995 plus £5563 company pension contribution, so average package over £65k

I am all for the unions protecting the poorly paid, or for doing a fair job at looking after better paid employees, but the way they are presenting this as the employees need extra pay to cover basic cost of living rises annoys me.

Link to Accounts used filed 20th November 2023

This entity covers the new build operation, signalling systems as well as the maintenance of the trains as a supplier to the owners of the train fleet so may not be a true reflection of pay at the workshop level given the diversity of activities. The trains are owned by separate entities Hitachi Rail (East) [LNER], Hitachi Rail (West) [GWR] who make payments to Hitachi Rail for services rendered. These entities receive payment based on delivering x diagrams daily and get penalised if they don't perform so last years cracking debacle hurt them badly on penalty payments and wiped out profits. However, they've both bounced back strongly this year and are very profitable despite the future liabilities for remediating the cracking although thats a function of the stupid contract let by DafT.
 

riceuten

Member
Joined
23 May 2018
Messages
547
Yes, which is strange, really. For those people broadly on the right of politics, and in favour of capitalism and a market economy, you would think that a group of staff marketising their skills and labour to maximise their income would be a good thing, not a bad one
Yes ! A true "market" if ever there was one.

It's also hugely ironic that the same people often justify outrageous CEO/Board salaries by saying "it's the going rate for the job", and yet when peons argue the same, it is apparently "economic blackmail".

And it is probably worth remembering at this point that companies tend to pass on their costs to the end users. So if, for example Hitachi staff got a well above inflation pay rise, that would be passed onto the customers, in this case the TOCs or leasing companies. They would then eventually pass the cost onto the end users, us poor schmucks that still use the railways. Which is why sometimes people question these disputes.
Or they could, perhaps, pay slightly less to their shareholders as dividends - just a suggestion...
 

Bantamzen

Established Member
Joined
4 Dec 2013
Messages
9,836
Location
Baildon, West Yorkshire
Or they could, perhaps, pay slightly less to their shareholders as dividends - just a suggestion...
Now in principle I would agree. However this is how capitalism works, people invest, companies spend, customers pay, investors get their money back and some. If you have a better idea as to how to finance private I'm sure plenty of people will be interested.
 

DanNCL

Established Member
Joined
17 Jul 2017
Messages
4,404
Location
County Durham
I'm not entirely sure why Unite think that Hitachi's staff are worth more.
Because as they’ve shown recently with Go North East and tried to show with Stadler before members voted to accept an offer preventing the strike, Unite have zero regard for ordinary people and seem to take joy in wreaking havoc on peoples lives to make political points.

For all of the RMT’s flaws, they’re not remotely as militant as Unite are and actually seem to have their members as their priority rather than scoring political points.
 

riceuten

Member
Joined
23 May 2018
Messages
547
Now in principle I would agree. However this is how capitalism works, people invest, companies spend, customers pay, investors get their money back and some. If you have a better idea as to how to finance private I'm sure plenty of people will be interested.
How it tends to work is that the private sector tend to run infrastructure into the ground and then expect the public sector to pick up the tab.
 

Top