SWR ATTACK CATERING SERVICES

RMT helpline 0800 376 3706 :: january 2021 :: RMTnews 8 RMT is calling on the government to urgently intervene and reverse South Western Railway’s reckless decision to axe its on-board catering provision.  SWR’s decision puts over 130 jobs at risk of redundancy this month and shows no regard for passengers who now risk losing the catering provision across SWR services. Thousands of passengers have already signed an RMT online petition calling for catering services to be retained and protected on SWR. At the same time as SWR is axing this vital service, its operations continue to be fully publicly funded under its Emergency Recovery Measures Agreement (ERMA). RMT analysis reveals that SWR could receive over £24 million in ‘management fees’ under the terms of its ERMA, money which can be used to fund profits and make dividend payments. SWR’s expenditure is calculated using the ORR’s financial information from 2018-19 as the most recent year’s data indicating the cost base of franchises before the Covid-19 crisis began. Franchise payments to government have been deducted from this cost base as it is assumed these will not be being paid. SWR has said that it consulted the DfT over its decision to axe this vital service and the union is demanding that the government intervene as a matter of urgency to reverse this damaging decision, and to ensure all catering jobs and services on SWR are protected. RMT general secretary Mick Cash said that the union welcomed the growing support from the public and MPs who have recognised that catering services on the SWR network must be protected.  “It is downright scandalous that SWR has axed its catering contract; putting over 130 jobs SWR ATTACK CATERING SERVICES RMT ramps up campaign to protect catering services on South Western Railway Cost base minus franchise payments to Govt 2018-19 6 months 2% (EMA) 12 months 1.5% (ERMA) Total £978,000,000 £9,780,000 £14,670,000 £24,450,000 Source: ORR Rail industry financial information 2018-19 That this House notes that South Western Railway (SWR) has terminated its on-board catering contract with Elior and that this decision puts over 130 catering workers at risk of being made redundant in January 2021; believes that the Job Retention Scheme, which is in operation until March 2021, should have been used to protect these jobs in the short term; is concerned that this decision will lead to the removal of catering services across the SWR network; believes that this will be detrimental to passengers and that the provision of on- board catering services must be protected across the network as part of rail’s recovery from the covid-19 pandemic; notes that the cuts to catering are being made despite the SWR franchise being fully funded by the Government through an Emergency Recovery Measures Agreement (ERMA); further notes that the ERMA pays SWR a fee which can be used to fund profits and make dividend payments; and therefore calls on the Government to intervene to ensure this catering service and all at-risk jobs are protected. EARLY DAY MOTION 1266 ON CATERING SERVICES AND JOBS ON SOUTH WESTERN RAILWAY