Thursday, 1 April 2010

RMT calls on Government to act to save 1200 Jarvis rail jobs

RAIL UNION RMT today called on the Government to launch a last-ditch rescue package to save 1200 skilled jobs at rail contractor Jarvis

Jarvis and its two rail companies, Jarvis Rail and Jarvis Fastline were last week placed in administration. This is in part due to the decision of the government backed Network Rail to defer thirty per cent of rail renewals work last year.

RMT understands that under the terms of the Railways Act, Jarvis is a protected industry which means that the government, if it so wishes, can be a guarantor of last resort and protect the jobs, wages and pensions of the Jarvis workers. RMT has been advised that the administrator had approached the Department for Transport to discuss what support could be made available. No response has been received from the Government.

RMT has also been advised that Deloitte yesterday met Network Rail seeking assurances on the continuation of existing Jarvis contracts. We have been advised that Network Rail have rejected this approach from the administrator.

Appallingly, Network Rail have even rejected a request for a four week breathing space and instead informed the administrator that they will instead be asking other companies to bid for the work undertaken by Jarvis.

Bob Crow, RMT General Secretary said:

"The total cost of the administrators' Jarvis rescue package would be a tiny fraction of the many billions used to bail out the banks and it would be money that would be easily recouped by the Government and Network Rail. That perfectly viable rescue plan has been thrown out with callous disregard for the livelihoods of the Jarvis workforce.

"Instead, as a result of the government refusing to use its legal powers to intervene and ignoring the administrator's proposals, 1200 workers will be sacked in a matter of days and their pensions destroyed. That is a scandal

"But there is still time to act. We have written to the Prime Minister and Secretary of State for Transport to ask them to use the Government's legal powers to intervene to protect the Jarvis rail workers. They cannot sit back and watch while these jobs are wiped out."

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