Labour Research June 2006

News

Rail strike could be averted

Strike action may be averted after intensive discussions between the rail unions and employers over the future of the rail workers’ pension scheme.

There is now the possibility that a commission will be set up, representing all interested parties, to resolve problems with the pension scheme.

The unions will, however, continue to ballot their members, with the results expected in early June. The ballot was called because employers had failed to give guarantees that they would either keep pension schemes open to all employees, or maintain current pension benefits, or cap employee contributions at 10.5%.

Unions had accused the 100 different rail employers of refusing to discuss seriously an industry-wide solution to the pensions crisis. The employers in turn claimed it to be a matter for the government, whereas the government said it was an issue for the individual rail companies.

Before the recent talks, RMT general secretary Bob Crow said: “We have asked the employers to negotiate a sensible industry-wide solution to the real threat of a pensions meltdown and we have asked the government to facilitate talks, but so far we have drawn a complete blank.”

If the row is resolved it will prevent what could have been the most comprehensive shutdown of the rail system in decades.

Labour MPs had raised the issue with an early day motion urging the government to “do all within its power to protect the pensions of rail workers”.