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RMT helpline 0800 376 3706 :: september 2016 :: RMTnews
12
A long-running RMT campaign
has scored a significant victory
with the final confirmation from
the London Mayor that a major
slice of tube maintenance work
is to be brought back in-house
next year.
RMT has welcomed this news
that Transport for London will
manage maintenance work on
the Jubilee, Northern and
Piccadilly lines through its own
in-house management team.
The contract dates back to the
failed tube maintenance
privatisation programme and for
the past 13 years the private
company Amey has been
contracted to manage
maintenance work across the
three lines – a legacy of the
Public-Private Partnership (PPP)
contract that previously existed
between Tube Lines and London
Underground.
However this arrangement
will now be brought to an end
at the end of next year – the
earliest possible point the
contract allows.
RMT general secretary Mick
Cash said that it was a massive
victory for RMT in terms of the
fight to end profiteering and
privatisation on London
Underground.
“This move helps to bring
closer the end to the crazy
experiment of tube maintenance
privatisation and is another nail
in the coffin of the tube PPP
disaster.
“It makes no sense at all
having maintenance work hived
off to private operators and RMT
will continue the fight across the
rail industry for these works,
and all other supporting services,
to come under the public sector,
under direct public control with
the staff jobs, pay and
conditions protected,” he said.
London Mayor Sadiq Khan
said that he was “proud” that
TfL would be bringing Tube
maintenance work back into the
public sector.
“I’ve asked TfL to carry out a
root-and-branch review of all its
business operations, and the
decision to bring underground
maintenance work in-house will
save tens of millions of pounds
to invest in our transport
network and pay for my freeze
in TfL fares.
“London Underground
already has experience running
successful maintenance
operations in-house, and we’re
making the changes as soon as
the contract allows.
“I want TfL to be the best in
the world while staying in public
control,” he said.
In June, shortly after taking
office, the Mayor ordered a root
and branch review of TfL
including eliminating
unnecessary duplication in its
operations, obtaining greater
value from its procurement
activity, and significantly cutting
reliance on agency staff.
London Underground already
has experience of bringing
operations back in-house
following the demise of
Metronet in 2007. Since then
costs have reduced and
performance has improved
compared to the PPP era.
Reliability on the Tube has
improved by 38 per cent since
2011 alone.
In total, managing the work
in-house is expected to save at
least £80 million over the next
decade. TfL and LU do not make
a profit, with all savings and
revenue put back into the
transport network and freezing
TfL fares.
Mark Wild, London
Underground’s Managing
Director, said that TfL would be
working closely with Amey over
the next 18 months to ensure a
smooth transition.
The PPP was devised by the
New Labour government
supposedly to attract private
sector investment for
infrastructure and avoiding such
schemes ending up on the
government's balance sheet.
Instead of having
conventional contracts whereby
the public body – LUL – simply
specified the work and put it out
to tender, the idea was to
privatise the infrastructure for a
30-year period and "incentivise"
the contractors to take a long-
term view of the assets.
This enabled London
Underground to remain publicly
owned while the maintenance
and the massive renewal
programme was carried out by
privately run companies with
disastrous results.
TUBE LINES BACK IN-
HOUSE NEXT YEAR
Final end to the disastrous legacy left by the Public-
Private Partnership (PPP) experiment by 2017