Media centre

Monday 21 Jun 2004

NETWORK RAIL CALL RAIL STRIKE THREAT ‘UNNECESSARY AND DAMAGING’

Region & Route:

National

Network Rail is dismayed and surprised at the decision of the RMT union to call a 24-hour rail strike starting at 18.30, 29 June until 18.29, 30 June.  This strike will severely inconvenience millions of passengers and freight customers.  The strike will also be a set-back to the significant progress made over the last twelve months in restoring punctuality levels to a four-year high. Following lengthy negotiations, Network Rail has increased its offer three times.  Since the result of the strike ballots, Network Rail made further concessions in an attempt to address all concerns raised by the RMT.  The current offer comprises: §         An improved pay deal, including an inflation-busting pay increase of 3.5% in year one and RPI + 0.75% (with a guaranteed minimum level of 3%) in year two; §         Travel benefits for all staff, with 25% discount on season tickets; and §         A fair deal on pensions, with a new Unions/Company pension forum to be set up. The issue of the strike relates to the pension scheme where, in common with the majority of large companies, Network Rail has closed its costly final salary pension scheme to all new entrants.  All existing members of the scheme are protected and all new employees are able to join a new defined contributions scheme that is the best in the rail industry and one of the best in the market place. Chief Executive John Armitt said: “Following a further round of talks, we have made our third offer, making further concessions to address the unions concerns.  This strike is wholly unnecessary and comes as a surprise when talks had progressed so constructively.” RMT - 2 Mr Armitt continued: “We understand that the RMT is happy with the revised pay offer and the concessions we have made on travel facilities.  Neither we, nor the public can or will understand why they are threatening to bring the country to a standstill when we have offered concession after concession.  The pay offer now on the table is generous and all existing pension rights are protected. “Network Rail will now consider all options to protect the public from this unnecessary and damaging strike, including possible legal action” With a strike date now set, contingency planning will begin in earnest. Network Rail has spent the last month re-training employees with signalling experience and competence so that it can keep as many services running as possible in the event of a strike.  Whilst major disruption would be inevitable in the event of a strike, the Company will do everything possible to keep the impact to a minimum.