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RMT helpline 0800 376 3706 :: april 2016 :: RMTnews
5
E
arlier this month the
Transport for London Bill
had its third reading – a Bill
which RMT has slammed as a
“multi-billion pound rip off
tailored yet again to the tax-
dodging, global super-rich”.
The Bill was introduced into
Parliament to help TfL
maximise, at all costs, the
profits that it makes from
developing its property.
Specifically, under clause 5
of the bill, TfL would have been
able to enter into novel
company structures – including
opaque, tax avoiding offshore
structures known as “limited
partnerships”. Limited
partnerships are well-known
vehicles for laundering capital
and were used recently to
defraud the Moldovan Central
Bank of millions.
RMT in conjunction with
Andy Slaughter MP, John
McDonnell MP, and numerous
other labour MPs and the Save
Earls Court Campaign combined
together to petition against the
Bill and try to prevent the most
ill-conceived aspects of it from
becoming law.
As a result TfL finally
conceded defeat on clause 5
and abandoned its attempt to
acquire the power to enter into
limited partnerships. However,
it persists with the remainder of
the bill.
The union has undertaken
further investigation into how
TfL was persuaded to engage in
the development of the Earls
Court site – the model for
future TfL development. After
an examination of Capco’s (the
property developer behind Earls
Court construction) annual
report, new concerns have
arisen.
Specifically, a note in Capco
annual report causes the union
to believe that the TfL Bill still
has potential for TfL to give
away its assets too cheaply and
too riskily. In the case of Earls
Court, TfL has already invested
nearly £400 million in Earls
Court Partnership Limited non-
interest bearing loan notes –
notes which are not redeemable
until 2064.
Under clause 4(2) of the TfL
Bill, TfL would be able to
permit “charges” to be entered
against its property as a way of
funding joint property
development. To raise finance
more cheaply, TfL would be
able to mortgage its assets to
fund property development
activities.
There is a fresh financial
crisis brewing – meaning that
there is an increased risk of
corporate defaults – especially
in the over-leveraged property
sector. TfL is entering the
property development game at
precisely the wrong moment
and in precisely the wrong way.
RMT general secretary Mick
Cash said that the withdrawal
of central government financial
support for TfL was forcing it
to risk its assets in complex
property gambles no matter
how dodgy and no matter what
the real cost to Londoners.”
“The construction firms with
which TfL plans to engage, are
running rings around TfL,
helping the hapless
organisation offload its prime
London assets at well below the
market rate.
“We have no confidence in
TfL to be able to secure a fair
price for its land – and our
concerns are borne out by its
dreadful governance failures in
relation to the development of
Earls Court,” he said.
R
MT members working for
global facilities giant ISS
on the Virgin East Coast
contract at Kings Cross
suspended further strike action
earlier this month after winning
major concessions from the
employers.
RMT had been in dispute
over a wide range of pay and
conditions grievances over
some time and members had
taken successful strike action.
As a result ISS finally
agreed to address the core
issues of the dispute and has
agreed to separate information
on the basic pay rate from
overtime and to be shown
clearly on payslips.
The company also agreed to
establish the threshold for
early/late clock-ins to ensure
there was no unfair deduction
practice and to conduct joint
risk assessments with appointed
RMT health and safety reps
specifically to assess the use of
the back packs and the safe
working practices.
It was also agreed to
establish a schedule and
conduct regular monthly
industrial relations meetings
with the RMT reps.
ISS also agreed to a
complete review of the Tanking
process Tanking – filling the
train up with water – and the
number of staff employed.
This review will cover
staffing and working practices
of the Tanking and should be
completed in a month’s time.
RMT general secretary Mick
Cash congratulated everyone
involved in defence of key staff
that prepared Virgin trains at
the world-famous Kings Cross
station.
“This pressure from members
and reps has achieved some
major concessions which would
not have been achieved without
the backing of a strong union
prepared to take action in
defence of its members.
“Our members have engaged
in a brave and unified battle
against this out-sourcing giant
and they are an inspiration for
the wider trade union
movement in the fight for
dignity and respect at work,”
he said.
TRANSPORT FOR LONDON BILL –
A MULTI-BILLION POUND RIP OFF
VICTORY ON ISS VIRGIN
EAST COAST CONTRACT