Possible strike action on NXEA

[Aictos]

Well I certainly should have taken the sunblock today at Hertford! Great weather most of the day except for a few minutes when it rained...

Still it's been even busier then usual with all NXEA's passengers using the FCC route which is only to be expected with our car parks heaving with cars when at certain times you might only see a few, there's 40+ instead!

But apart from all that, RMT and ASLEF members have my full support.

 

[O L Leigh]

Thanks Ajax.

You must have been on earlies if you got all the sunshine we missed out on.

O L Leigh

 

[regulation9]

Metroland: You're a smart guy, but I believe that I have already addressed some of the points you have raised.

The one that I feel certain I have already covered is your claim that efficiency savings should be offset against subsidy. While this is a wonderfully utopian wish and something that I think many would like to see, it just ain't ever going to happen. Firstly there is no mechanism for this, but the main reason has to be that there is no incentive. It's not like the TOC's can invest in their franchises in any meaningful way and see a return. Even though the railways operates in a slightly unusual financial situation, these are still private companies who are driven mostly by profit. As I said earlier in this thread, any savings will simply be offset against the bottom-line in order to make the company more profitable.

Now as I have also already clearly said, I have a lot of sympathy for those in the workforce who are facing pay freezes, redundancy and the like. However, as the effects of the recession are not being universally felt I see no reason why those companies who are not being adversely affected should be exempted from giving their staff a sensible pay increase. It may seem unfair on those who are unlucky enough to be working for a struggling employer, but it is also unfair on those who are not if we allow this situation to continue.

On your point about there being many who would gladly do the job for less, well I can only wish you good luck in trying to practically demonstrate that. TOC's who offer lower rates of pay have big problems with staff retention, ocassionally to the extent that the "savings" from the pay difference is eroded by the constant burden of having to train replacements for those who leave the moment they qualify. However, your arguments on this point can only ever remain theoretical as there is now no way of ever implementing wage caps or reductions.

But to bring this post back on-topic, we're being told by NXEA that the cupboard is bare. Unfortunately this doesn't add up. According to the Annual Report & Accounts for 2008, the UK rail division made a profit of £81.3m (up from £63.3m in 2007 and £49.1m in 2006) in spite of falling revenue (click. At the beginning of July shareholders received a dividend of 39.12p per share, the highest dividend payout yet (click). I'm no financial expert but it appears to me that the company is in rude health, something that I am sure the half-year results will underline when they are published on 30th July. This is not a company that is struggling it's way through turbulent times, but simply one that wants to secure it's future profitability at any cost (though they can still find the money for the Chief Exec to write individually to every member of staff on what feels like a weekly basis).

It bares saying again that the issues at stake are not solely to do with money. The state of industrial relations has sunk to an all-time low. Unlike some of my colleagues who have no work experience outside the railways and, therefore, no concept of how the management of private companies tend to behave, I am pretty tolerant of a lot of things. However, even I have now been thoroughly alienated by some of the things that have been going on. Naturally I have to be a little bit careful about what I say publicly, but I have never experienced anything to compare to this in any other job.

I'm glad that you are pro-rail and I would never want to try and persuade anyone to be pro-union if they are not already so inclined. However, what I really want to try and convey is at least some kind of understanding about the issues behind the dispute. I'm not seeing this as any sort of debate to be won.



My contract of employment does indeed require me to be bound by the terms of the Public Interest Disclosure Act 1998. This means I cannot say, do or take part in anything that might damage the company's business.

Besides, the ASLEF website contains links to company council newsletters, not minutes.

O L Leigh

OK. So what is this:

www.aslef.org.uk/files/112942/.../FebruaryRe-ConMins2009.doc

and this:
www.aslef.org.uk/files/112940/FileName/JanuaryMins2009.doc

and this:
www.aslef.org.uk/files/107993/FileName/FebMins2008.doc

and this:
www.aslef.org.uk/files/112941/FileName/FebruaryMins2009.doc

and this:
www.aslef.org.uk/files/108841/FileName/DecemberMins2008.doc

The links to these documents were on the ASLEF site a few days ago. Odd that the links have now been removed. Any reason why?

 

[O L Leigh]

Can't comment. Perhaps you should address your question directly to ASLEF.

I have to say that the removal of the links suggests that they shouldn't have been there in the first place. These aren't documents that I would expect should be publically available, and links to them were not available when I checked before posting last.

O L Leigh

 

[Aictos]

No problem O L Leigh, by the way I was on earlies and have been most of this week after 2 weeks off,

Anyway, how busy does Hertford East get compared with Hertford North on a normal weekday service?

 

[HH]

The links to these documents were on the ASLEF site a few days ago. Odd that the links have now been removed. Any reason why?

Yes, they obviously shouldn't have been public. There's embarassing stuff in there - for both sides.
--- old post above --- --- new post below ---
There's quite a few points to make here:

1. That NX have made money as a company in the past isn't really relevant; it's what NXEA is doing today. They're hardly likely to take profits from bus companies to pay NXEA workers more.

2. Is NXEA in Revenue Support? Because, if so, the government picks up a big share of that lost revenue; so the strike may not be that painful to NX, seeing as it's saving most of it's staff and running costs. This is quite a different position than when you take the full revenue hit. I ask because it seems to me that management aren't overly bothered about the strike. And yes, due to the way the franchising system works it is quite possible that companies get revenue support and still make a profit.

3. The generally accepted formula for recent pay awards has been RPI +1%, based on April's RPI. Is there any valid reason for asking for more for this year? Judging by Chairman Bob's quotes, I don't think that there is, or he would give themn to us, rather than wittering on about NX's profits.

4. The TOCs have done quite well out of the fares increases this year - also RPI +1%, but based on the preceding July RPI. Next year will be painful, with RPI currently -1.6%. I don't suppose the staff will want to know about that if the April RPI is back to 3% next year.

5. I note that there have been a few comments about maintaining terms and conditions. T&Cs like those outlined in the, now missing, ASLEF documents? For example the right for Drivers to come in and get paid for sitting around, knowing that they're not needed. Anyone who's worked in the rail industry knows that there are dozens of these agreements around, that cost companies a lot of money, and have no justification.

6. From what I gather there's been no love lost between staff and management since NX took over the franchise. Reminds me of one or two other (ex) NX franchises.

 

[O L Leigh]

Anyway, how busy does Hertford East get compared with Hertford North on a normal weekday service?

I don't know how busy Hertford North is, so it's hard to compare.

The loadings at HFE are not massive, as I believe more people use the GN line. However, the WA route is more convenient for the City of London and Docklands, so we carry a fair few. However, we pick up many more at Ware and the other intermediate stops to Broxbourne. I expect that it's some of these people you're seeing extra.

1. That NX have made money as a company in the past isn't really relevant; it's what NXEA is doing today. They're hardly likely to take profits from bus companies to pay NXEA workers more.

The half year figures for Jan-Jun were published yesterday (click), but the precise figures for the individual rail franchises appear to have been buried. However, what is plainly reported is that the UK Rail division has so far showed a paltry profit of £2.5m. The main reason for this is that NXEC has lost "more than £20m during the first half of 2009". Even allowing for the usual level of obfuscation included in such documents, simple arithmetic alone shows that c2c and NXEA together must have made a profit of more than £22.5m in the first half of this year, the lions share of which will have come from the larger NXEA franchise. Total rail revenues were down on the same period last year, although this was due to the loss of Gatwick Express. Underlying revenue for the remaining franchises rose by a modest 1%.

However, to address your point, I believe the fact that NX were making profits in the past is precisely the point, as I have already explained at length. For clarity I should point out that when I'm talking about profits I am referring either to NX Rail or NXEA specifically and not to NX Group as a whole.

2. Is NXEA in Revenue Support? Because, if so, the government picks up a big share of that lost revenue; so the strike may not be that painful to NX, seeing as it's saving most of it's staff and running costs. This is quite a different position than when you take the full revenue hit. I ask because it seems to me that management aren't overly bothered about the strike. And yes, due to the way the franchising system works it is quite possible that companies get revenue support and still make a profit.

Yes it is, although I can't quickly find the figure of precisely how much support it receives.

While your points are certainly interesting, I don't believe it negates the effort of the striking staff. Hopefully it will have the effect of increasing the pressure on the company from Westminster to swiftly resolve this dispute.

3. The generally accepted formula for recent pay awards has been RPI +1%, based on April's RPI. Is there any valid reason for asking for more for this year? Judging by Chairman Bob's quotes, I don't think that there is, or he would give themn to us, rather than wittering on about NX's profits.

There is no generally accepted formula for pay awards across all TOC's. It is the case that the award is generally RPI plus a bit, but there is no general agreement on which month's RPI figures the award should be based on or how big the "plus a bit" should be.

For NXEA, the formula is certainly not April's RPI + 1%.

4. The TOCs have done quite well out of the fares increases this year - also RPI +1%, but based on the preceding July RPI. Next year will be painful, with RPI currently -1.6%. I don't suppose the staff will want to know about that if the April RPI is back to 3% next year.

I and a number of my colleagues would understand if a pay award was miserly if the cupboard really was bare, but it clearly isn't. The company is on an aggressive economy drive while also wanting to keep the shareholders sweet in order to stave off any potential buy-out. Consequently they are squeezing the franchises until they squeak to extract the pennies.

5. I note that there have been a few comments about maintaining terms and conditions. T&Cs like those outlined in the, now missing, ASLEF documents? For example the right for Drivers to come in and get paid for sitting around, knowing that they're not needed. Anyone who's worked in the rail industry knows that there are dozens of these agreements around, that cost companies a lot of money, and have no justification.

Discussion on T&C's has not made the public domain because the company and media alike are focussing the spotlight solely on pay.

Unfortunately you are grossly oversimplifying the issues under discussion in the extract of the DCC Minutes to which you are referring. There are T&C's as well as local-level agreements that cover issues such as these, as well as agreements relating to whether or not work can be dealt with under the "cross cover" arrangement.

All that aside, you have inadvertently stumbled on just one of the reasons why industrial relations are so poor at present. The issue here is not specifically about whether or not a GE driver has the money earned on a rostered Sunday protected, but about the scope of "cross cover" between GE and Mainline and the company's re-interpretation of agreements to suit. I'd love to tell you more about this and all the other things caught under the heading of "industrial relations", but this is not an appropriate setting for me to do so.

6. From what I gather there's been no love lost between staff and management since NX took over the franchise. Reminds me of one or two other (ex) NX franchises.

I have certainly heard sentiments along just those lines voiced in messrooms where I work, and I would have to agree that relations have certainly taken a nose-dive over the past year or two. Having had an employment background outside the railways I am generally more tolerant than some of my colleagues as I can see and understand when management are just doing what management do, but this is a level or two beyond the worst that I have experienced elsewhere.

O L Leigh

 

[HH]

Am I not right that the main area of contention, for some time, has been (the failure to reach) harmonisation? I'll bet this underlies the cross-cover dispute.

Generally when franchises come together, as at NXEA, the staff side ask for a harmonisation that takes the best bits from all the current T&Cs. Management of course doesn't want the cost of this. In my experience even when a reasonable compromise, agreed to be put forward by the union, is found, it frequently fails a vote, because one section objects to a particular change. IIRC in one case (not NXEA) the objection was about maintaining differentials.

As far as the profit is concerned I wouldn't be at all surprised if C2C wasn't actually making more of a profit than NXEA. The C2C Franchise is one of the older ones, before huge premiums and silly bids became the norm. I know that NXEA was struggling at one point. It was rescued by the high growth in the last few years, but that's definitely gone into reverse. The Lehman Brothers collapse will have hit them hard - when I was at GER Lehman was the single biggest ST customer.

With regard to pressure from Westminster, you may (or may not) be surprised to learn that the DfT would love to see the removal of some of the costly T&Cs enjoyed by rail staff. There's a nudge here and a wink there to that effect. As a cynic I speculate that they might be very happy to see NX, the pariah of the moment, bear the brunt of the disputes over this year's pay round. If it all goes wrong they can take the franchise off NX with no mud on their faces.

When I was at GER then April was certainly the applicable month for RPI related increases. It hardly matters though, all months are negative except January, and that was 0.1%. You know as well as I, that if the company was losing money, but RPI was positive, then the claim would be based on RPI. That's fine. Everyone is out for themselves. Just let's not pretend any moral high ground here.

 

[O L Leigh]

I feel that I'm being drawn into an area of discussion that I am uncomfortable going into on a public forum. Please bear this in mind if my responses to the points you raise appear either evasive or incomplete.

Harmonisation is something that we've never really wanted, because the offered compromise was unacceptable to the staff on all three of the former constituent companies. I certainly don't recall that harmonisation was kicked back because there was an intention that differentials were maintained, but more of ensuring that harmonisation was not a detrimental process for staff. My own recollection of the time was that the company wanted harmonisation to take the form of a "lowest common denominator" approach that would have seen large-scale changes to the T&C's and local agreements (especially for former Anglia and WAGN staff) for insufficient recompense, and were unwilling to improve the package sufficiently to meet staff aspirations. I don't recall there being any ideological objections to harmonisation per se, just the package that was being offered.

The problem is that NX do not publish financial performance figures for each franchise, only for the UK Rail division as a whole. Therefore it is hard to be certain of the profits that the three constituent franchisees are returning. However, a colleague of mine mentioned reading audited figures for the rail division that suggested that 60% of all the profit made by the division came from NXEA. I can't cite this or link to anything to back this up unfortunately, but the colleague I spoke to is not given to making things up. You can take this information as you want, but I'm inclined to add just a small pinch of salt to what I was told. Whether or not the figures are correct, the inference is that, of the three NX rail franchises, NXEA is the most profitable.

I am accutely aware that this dispute could easily transform itself into something larger and altogether different if Westminster decide to step-in or NX is bought-out by a competitor, and have been saying as much in the messrooms. It could well end up not addressing any of the concerns that we are facing. We could very easily end up with a new band of masters who are just as intransigent as the current lot, and no pay increase to boot. The problem is that we can only deal with the situation we are in now and try not to worry too much about all the if's, but's and maybe's that might potentially happen (or, then again, might not). So we can but continue.

I'm not sure I agree with your final point, though I can see where you're coming from. As I have said previously, the issue here is not solely to do with pay but also encompasses the way in which the company deals with it's staff. The story changes depending on who the company is talking to, but the two versions are contradictory. Either there is money in the pot or there isn't. If there is, then we feel that the reward for good performance should be shared equally. If there isn't, then the company is being reckless in paying the shareholders such a big dividend and deceitful by publishing figures that suggest that the cupboard is actually reasonably well-stocked. Which is it?

Personally what I would like to see is a different way of calculating the pay awards that does not rely solely on the RPI figures, but also links pay awards to company performance. The RPI figures are helpful when determining cost of living allowances, but I strongly feel that everyone involved in the company should be motivated to do better by having a stake in the performance of the company. That way we would feel that our hard work is being rewarded as well as all being together in the same boat together. This is the only fair and equitable way of ensuring a decent pay settlement while protecting staff earnings against falling behind the increases in the cost of living.

O L Leigh

 

[HH]

I said "not NXEA" on the differentials point. But anyway harmonisation seems impossible for one TOC to achieve. I find it a stretch to put that down solely to all managements wanting to save money by getting staff down to the LCD. There are benefits for management in harmonisation that cost the staff nothing, so management should be willing to offer a deal that costs slightly more than the current mix. And from my experience they are usually willing to do that.

However, IIRC Anglia main line drivers did have a differential over 'the locals', plus they worked a 5 day week. I seem to recall reading that a 4 day week was part of the issue.

Now for the uninitiated I'll explain the 4 day week and drivers. For most TOCs the 4-day week is a misnomer. I think that GNER (now NXEC, soon to be something else) were the only TOC to have a genuine 4 day week, i.e. one including Sundays. Most drivers work 4 days Mon-Sat plus some Sundays. They are paid extra for the Sundays (so this work is on top of the published earnings). The number of days is not linked to a change in the working hours - most drivers went to 35 hours some years ago.

Now the aspiration to get less than 5 day weeks is very reasonable. However a strict 4 day a week policy can be very costly. 35 hours divided by 5 is 7. And on some routes 7-8 hours can be diagrammed efficienctly. 35 divided by is 8:45. On some routes this cannot be diagrammed efficiently at all. One example of such is the TL Bedford-Brighton route, where a journey takes 3 hours. When TL moved to a 4 day week it cost them shedloads of extra drivers*. My guess is that there are similar issues on NXEA.

* Also for the benefit of the uninitiated, I should explain that the diagramming of drivers is a black art. There are all sorts of factors to take into account, such as avoiding performance risks (like changing drivers mid-journey) and in particular the various rules governing drivers, such as maximum time driving, maximum time in cab, walking times, booking on and off times, unit preparation times, and the length and timing of diagrammed breaks (which often change with the length of the diagram). Firms want to do this in a way such as to minimise the number of diagrams required for efficiency reasons. And basically the more rules, or more restrictive the rules are, there are, the less efficient it gets.

 

[yardman]

Well it seems despite some pretty stern message being made by the staff at NXEA it seems a shame that talks have fallen down and once again there is no alternative than for the staff to 'reiterate' their concerns. I think the whys and woes have been pretty much summed up here.

Just one question i'd like to ask, (albeit one i probably know the answer to); While the unions are out on the picket line, who is currently keeping the skeleton service going? Surely with such a strong majority of membership there cant be many non unionised drivers out there are there? or is there a clause that "some degree of service" must be maintained. I was watching today and although not advertised NX managed to slip in an extraordinary service in their revised timetable.

 

[O L Leigh]

Again, I'd love to say more about why the talks have "fallen down" this week but am unable to do so. Suffice to say that the reason for this appears to be largely down to tactics being employed by the company.

Almost all of the trains being run on strike days are being driven by driver managers. There are some non-union drivers who are in a difficult situation, but the numbers are extremely low and certainly not enough to provide a service. At my location there are only two drivers that I know have either worked or would be likely to work on strike days.

O L Leigh

 

[yardman]

I think many of us unionised guys know the reason for the break down in talks. Was curious to know how the network continued (albeit under a skeleton service). Am off today so may pop over to my local station and offer my support.

Driver managers running the tracks should be interesting. Just thinking at BS depot is there not 1 DM for 25 drivers? quite a cut!!?

 

[jopsuk]

Veering a tad off topic, but is there a cut off in grades (not knowing the grading system mind) above which you're made not welcome in the unions? Are there separate unions for management grades?

I ask, as my dad is a reasonably senior manager (deputy Governor at a large prison), but is in a union. He was even, I'm pretty sure, when it was still an independent union before being swallowed up (by PCS I think) Secretary, on a voluntary basis. In the wider civil service, the unions do reach more senior levels.

 

[Mojo]

Tssa (Transport Salaried Staffs' Association) is often cited as the union for "white collar" transport workers, although to what point people are in the union I don't know - whether it is just for clerical staff or perhaps management who don't work in the HQ, such as supervisors, station managers or driver managers. My mum was a manager in the pensions department in the transport industry (high enough to get a First class Priv) but was in Tssa.

 

[Metroland]

TSSA is for: Anyone working in Administrative, Clerical, Supervisory, Managerial, Professional, Technical, Research, Executive and allied grades and positions including all salaried staff of all undertakings operating directly or indirectly in the transport and travel industry (with the exception of those employed as train drivers employed by any undertaking where TSSA is not party to an existing collective agreement covering such employees).

For the railways this is normally, S&T, Clerical staff, managers, signallers, controllers, engineers, supervisors.

 

[Mojo]

NRES reports strike action suspended. Has an agreement or something been reached?

 

[GB]

A new offer is on the table but I dont think it has been accepted yet though I could be wrong.

However I have seen details of the offer on another forum and there are a few strings attached which im not sure will go down to well with the NX staff.

 

[jdtaylor]

Well, for the level of servie I've recieved which has been the best of any train company in the Uk, they deserve something, as I've had a train replatformed for me during a lifr refurbishment without asking, a Manager travelling with me to make sure I could get off alright at an unmanned station and gate barriers opened and really some of the best service from station staff around and although I am VP and I know the MD, serviice has been some of the best and I do think they deserve more recognition for the hard work they do put in

 

[Metroland]

NRES reports strike action suspended. Has an agreement or something been reached?

Nobody knows, even the terms of the dispute was kept relatively secret. Labour unions are the only known form of cartel still legally allowed to operate.

 

[O L Leigh]

An offer has been made that the staff-side representatives have agreed is suitable to put to a vote, so strike action is suspended while the membership is balloted. As before, I don't feel at liberty to discuss the minute details on a public forum. However, there are issues that will require thought.

This shouldn't be surprising as it is the normal course of events under such situations.

O L Leigh

 

[Metroland]

The offer has been refused:

Rail passengers on busy commuter and other routes are facing fresh travel chaos after more strikes by train drivers were announced in a long-running row over pay and conditions.

The drivers' union Aslef said its members at National Express East Anglia will walk out for a week from September 21 after failing to accept a deal aimed at ending the dispute.

Workers staged a series of strikes last month but the action was suspended after a new deal was put forward.

Aslef said its 800 members had refused to accept the deal.

Last month's strikes hit busy commuter and other services between London and Essex, Cambridgeshire, Norfolk and Suffolk.

Members of the Rail Maritime and Transport union and the Transport Salaried Staffs Association took part in the last strikes, which caused misery for thousands of commuters.

http://www.ananova.com/news/story/sm_3475018.html?menu=news.topheadlines