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Network Rail cuts down on contingent labour workforce suppliers

Network Rail is to reduce the number of contingent labour suppliers it uses from 57 to 20, with four core suppliers providing 70% of the workforce, supported by smaller specialist suppliers. 

However, as part of a ‘strategic change’, the rail infrastructure owner will be awarding a series of contracts with contingent labour suppliers to provide workers across the network with a minimum spend of £450m over five years. 

The five-year contracts, which start on 1 April 2015, represent the provision of approximately 500 people per day. 

The four core suppliers to be awarded contracts are: Ganymede Solutions Ltd; McGinley Support Services (Infrastructure) Ltd; Morson Human Resources Ltd; and Shorterm Ltd. 

Ganymede, a wholly owned subsidiary business of RTC, will enter into the contract with Network Rail to provide contingent labour services including the supply of safety critical, track and E&P (electrification and plant) resources in the West, South West and North East England, the Midlands and Wales. The contract has an estimated order book value of between £80m to £100m. 

Commenting on the award, RTC chief executive Andy Pendlebury said: “This is a significant achievement for Ganymede and the Group as a whole. 

“Ganymede has steadily established itself as one of the UK’s most respected contingent labour suppliers and our long term partnership with Network Rail both underpins this and provides a fundamental pillar for the strategic growth plans of RTC’s business.” 

Hand-in-hand with the new contracts comes a new code of conduct for labour that will require suppliers to pay as a minimum, the London living wage within Greater London; invest in training and development of their workforce; and minimise travel time. 

Suppliers must also adopt Network Rail’s lifesaving rules, and ‘speak-out’ systems; provide all equipment and protective clothing free-of-charge to workers; and provide a competent and more professional contingent labour workforce. 

Nick Elliott, managing director national supply chain, said: “These new contracts are all about transforming our contingent labour workforce into a more professional, fairly remunerated and appropriately trained body of people that we are able to call upon when the need arises. 

“The new code of conduct for labour will drive better employer behaviours, improve the quality of the supply chain and help ensure that workers are treated fairly.” 

Sean McGinley, business support director at McGinley Support Services Limited, told RTM: “We are pleased to have been selected as one of the four main Network Rail’s contingent labour suppliers for CP5. As we mobilise, we recognise that Network Rail’s Code of Conduct is the new standard for rail related service delivery in the UK and have already invested significantly in a higher level of health, safety and wellbeing for our workforce. 

“We look forward to helping Network Rail reach their objectives with a fully compliant Code of Conduct service from the 1April 2015.”

The other suppliers awarded specialist and support contracts are: 

  • Amey Rail Ltd
  • Bridgeway Consulting Ltd
  • Carillion Rail
  • Colas Rail Ltd
  • Coyle Personnel Plc
  • Exxell Ltd
  • GM Rail Services Ltd
  • GPX Engineering Ltd
  • Infra Safety Services Labour Ltd
  • Keltbray Rail
  • Linbrooke Services Ltd
  • MECX Group Ltd
  • Renown Railway Services
  • Resourcing Solutions Ltd
  • SW Global Resourcing Ltd
  • TES2000 Ltd 

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