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Friday 10 Oct 2003

NETWORK RAIL AND JARVIS ANNOUNCE AGREEMENT ON FUTURE OF JARVIS’ RAIL MAINTENANCE CONTRACTS

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Network Rail and Jarvis today announced that they have reached an agreement on the future of Jarvis’ rail infrastructure maintenance contracts. The Board of Jarvis announced earlier today that it has made a commercial decision to exit rail maintenance contracts. Jarvis currently operates three rail maintenance contracts on behalf of Network Rail - Central, East Coast Main Line and Liverpool, North Wales and Merseyrail. Network Rail has therefore decided to bring these three contracts in-house. The handover is targeted to be completed by April 2004, but the exact timing will be determined following detailed discussions and consultation, including safety case validation, which will take place over the next few months. It is anticipated that Jarvis employees who are currently engaged in rail maintenance activity will be transferred to Network Rail. All terms and conditions of employment will fall within TUPE legislation. Jarvis Chairman, Paris Moayedi said: “The Board of Jarvis has decided to focus the business on delivering its core services to even higher standards of excellence”. Rail maintenance accounts for less than 15 percent of Jarvis’ turnover and Jarvis now intends to concentrate on its other core activities, including track renewals. - more - Jarvis - 2 “Network Rail has decided to take these contracts back in-house. We will work closely with Network Rail to ensure the handover is as smooth as possible.” Network Rail Chief Executive, John Armitt said: “We are pleased to have reached this agreement with Jarvis. Jarvis has decided to exit rail maintenance and we have concluded that the best way forward is to bring these contracts in-house. We will work closely with Jarvis in the coming months to ensure a smooth transition."