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Carillion plans job losses as NR renewal cutbacks start to bite

The RMT has this week vowed to fight “vigorously” against planned cuts to renewals work for Network Rail (NR) being carried out by contractor Carillion.

The news was broken as the company handed the union a consultation document that warned that job redundancies and cuts could be imminent. However, no job numbers were disclosed.

Last year, the ORR predicted a greater reliance on a range of safety controls in order to maintain asset safety as a result of NR’s shrunken renewals portfolio. At the time, it predicted this would have “some adverse effect” currently expected on asset condition and performance across the network, particularly earthworks, drainage and structures. This was not a new call and has been made since the start of CP5.

The warning came shortly after the regulator also revealed that higher renewals costs and enhancements underperformance have been key factors to NR’s work costing £1.7bn more than expected so far in CP5. It was also stated that this will leave the company in a worse financial position at the start of the next control period.

However, following the plans by Carillion, which is still one of NR’s top suppliers, the RMT has stated it will take action to stop the cuts, which it claims will “present a direct threat to both jobs and safety”.

“The government and NR 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,” outspoken general secretary of the union Mick Cash stated. 

He added that the announcement of cutbacks affecting Carillion and other infrastructure companies were 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”.

“RMT will not stand by and watch these jobs vanish and will campaign all the way politically and industrially to protect them,” he concluded.

A spokesman for NR commented: “Network Rail continues to heavily invest in Britain’s railways, with spend on renewals growing this year, compared to last. 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.”

A Carillion spokesperson confirmed the company was in dialogue with NR and the unions.

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