The RMT union has claimed that contractor Carillion is planning job cuts and redundancies as a result of spending cuts from infrastructure operator Network Rail, which is still facing a funding gap of nearly £2bn.
The union said it has been presented with a consultation document from the company indicating possible job cuts and redundancies and is clear the proposal ‘is a consequence of Network Rail’s cuts in its planned renewals programme for the rest of the current Control Period’.
RMT general secretary Mick Cash said the union would ‘campaign all the way politically and industrially’ to protect jobs
He said: ‘The Government and Network Rail have a duty to ensure that our railway is maintained and renewed to the modern and safe standard that the public and our economy needs and deserve.
'The announcement of cutbacks affecting Carillion and other infrastructure companies are a sure sign of cash and job cuts that will put at risk skilled jobs and also the modern, safe rail infrastructure we desperately need.’
A Carillion spokesperson said: ‘We are in dialogue with the RMT and Network Rail.’
A Network Rail spokesperson said: ‘Budgets are constantly under review to ensure we maximise the value from every pound spent. As a result, some non-essential renewals work is being postponed and the money diverted into areas that will have more direct impact for passengers - at improving train performance or helping to fund projects that expand and improve the railway.’
The infrastructure operator’s difficulties appear to stem from its continued failure to execute a sale of ‘non-core’ assets to raise £1.8bn, as part of a plan in the 2015 Hendy review to fill a funding gap of £2.5bn during the current Control Period.
Transport Network has asked Network Rail for an update on this process.
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