Philip Hammond to confront rail unions over transport costs

Report showing trains in Europe cost 40% less to run will fuel attack on pay and outdated travel perks Transport secretary Philip Hammond will spark a confrontation with unions this week by demanding steep cuts in the wage bills of Britain’s railways, citing an official study suggesting that they cost 40% more to operate than equivalent systems in France, Germany and the Netherlands. The report, by former Civil Aviation Authority chief Sir Roy McNulty, will set an “aspiration” of reducing the cost of transporting passengers by 30% by 2019, with potential savings of more than £1bn annually by the end of the decade. Commissioned in the latter days of Gordon Brown’s government, the study, to be published on Thursday, is likely to be used by ministers to attack both unions and the historical perks enjoyed by rail staff. Train drivers earned an average of £41,179 last year, more than police officers, teachers, firemen and nurses, and unions have

Posted by on May 14, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.