Posted 15th May 2012 | 5 Comments

East Midlands MD condemns escalation of dispute

David Horne of East Midlands Trains has warned that the latest developments will cause 'more uncertainty'

David Horne of East Midlands Trains has warned that the latest developments will cause 'more uncertainty'

THE ASLEF pensions dispute which is disrupting East Midlands Trains again this week is showing signs of worsening, as a second union has now joined the fray.

The RMT is balloting its EMT members for industrial action, and a war of words has also broken out.

The operator's managing director David Horne has described the latest developments as 'extremely unhelpful'.

Drivers belonging to Aslef walked out again yesterday, and services on EMT routes were reduced or replaced by buses. There is due to be a similar stoppage tomorrow (Thursday).

The dispute concerns a proposed reduction in pension contributions, which Aslef has claimed is set to 'cheapen' the scheme.

Talks to resolve the argument broke down last week, although both sides have said they are willing to restart negotiations.

During the talks, EMT said it had also put forward 'updated proposals which would enhance take-home pay for employees and increase their pension benefits,' but accused Aslef of refusing to allow its members to see or decide on the proposals.

Aslef has countered this claim by dubbing it 'even more ridiculous than it is insulting'. The union's general secretary Mick Whelan alleged that the company was 'getting desperate'. 

He said: "They have run out of ideas, so they are beginning to hit out like naughty children. Not being members of our union, they obviously do not know what has been communicated. We have communicated with our members by every means available to us.

"This type of misleading attack will only lengthen this dispute. I call on EMT management to try to control themselves and come back to the negotiating table in a reasonable and dignified manner."

The general secretary of the RMT Bob Crow added: “While RMT members will receive a small financial gain from a reduction in contributions it is clear that the biggest winner will be the employer. The RMT believe that the employer’s savings will be in the region of £750,000 per annum. This short term measure could well have serious long term implications for the health of the fund as the volatile financial markets head downwards on the back of the Eurozone crisis."

David Horne of EMT warned that the latest news would 'cause further uncertainty among our passengers, whose services are being disrupted for no reason'.

He said: "The fact is that the pension scheme is in good health and the new pension contributions are the recommendation of independent experts. It makes no sense for the RMT to ask their members to join ASLEF colleagues in striking for less pay and losing hundreds of pounds by walking out."

He added: "If the unions really have the interests of their members at heart, they should work with us to ensure employees benefit from higher take-home pay and increased pensions benefits. We would urge RMT members to vote against strike action and press their union to get back round the negotiating table."

The RMT ballot for strikes 'or action short of a strike' closes on 31 May.

Reader Comments:

Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.

  • MikeB, Liverpool

    Perhaps Brian Souter should now step in and sort out what appears to be totally inept management or else, Stagecoach might be in danger of losing the franchise in 2015

  • Lee, Manchester

    I wonder if either side has considered that the current strike action encourages passengers to either use an alternative TOC's trains or mode of transport?

    I agree with Cliff's earlier comments that neither side seems to be thinking that without passengers neither management or staff would have a job. I appreciate economies have to be made during the double-dip recession, but has EMT or any other TOC ever considered that reducing fares can serve to encourage people to use rail transport?

    Have the unions not yet learned that by asking for more money, that will only come via increased fares as private companies atempt to make up for any shorfall? Increased fares discourage rail use. Couple all of this with the closure or reduced opening hours of stations leads people to either seek alternative cheaper transport or not bother paying for tickets. Either will result in a further financial shortfall.

  • Ken Usher, Birmingham

    Its a pity they [EMT] are not prepared to negotiate and see sense themselves!

    EMT have refused to leave the Joint Contribution Rate (JCR) at the current higher level, despite [strange as it may seem] being urged to do so by the recognised Trades Unions.

    EMT have accepted the actuaries recommendation to reduce the JCR based on his assumption of fund growth, so that they can pocket over £2m by the end of the franchise in 2015.

    Unfortunately, since his last evaluation in 2010 the stock markets have been in turmoil with estimates of fund values dropping by 7% per year.

    It is EMT who refused to guarantee that if the next evaluation (December 2013) showed a funding deficit proving the actuaries assumptions were wrong, that they would make good that funding shortfall, from what they had made from the savings.

    It is EMT who are misleading members of the scheme over the levels an individual would save annually.

    It is EMT who have refused to provide the projected savings on actual pensionable pay across the respective pay scales and not gross earnings! (Overtime, Rest Day Working, additional Sundays, booking on allowances, commission, Restructuring premiums, etc - don't count).

    It was EMT who injected £130k as a one off payment in order to pocket over £2m - the stock markets don't give that sort of return on investment in three years!

    It was EMT who ignored the fact that had the change in future benefit calculations not changed from RPI to the governments preferred CPI then the section would have been a further 10% in deficit requiring an increase in JCR not a reduction!!

    Individual members may indeed receive a short-term gain but will then endure long-term pain when the JCR has to be increased significantly!

    EMT may not be in charge of the Franchise after 2015 so would not have to share that probable burden - but individual members will.

    EMT continue to try and mislead everyone by claiming in their release that members will gain by higher take home pay and increased pension benefits - members may get to save the price of a pint per week - but there is NOT any increase to pension benefits.

    Individuals should remember that Pensions are deferred earnings to provide schememembers with some degree of comfort during their retirement! EMT are reducing that potential retirement pot by pressing ahead with these changes even though there is ABSOLUTELY NO NEED TO.

    So If you see David Horne (Managing Director) on his travels ask him if he and his Senior Managers, will give up their annual bonuses, should EMT's pension section be in deficit at the next evaluation, so that they can be re-invested into the scheme to reduce that anticipated deficit?

  • Cliff, Lincoln

    It's high time ASLEF and EMT considered the people who fund their employment - and by that I mean the rail passengers, for without them neither the staff or the management will have a job, never mind a pension.

    The situation for rail passengers is intolerable, and hundreds of people who rely on YOU to get them to work and back home are being let down due to uncertainty caused by your selfish attitude.

    Get this matter sorted and get back to providing the public with a service.

  • Steve Alston, Crewe

    Whilst the union can at times be pig-headed, I do think that at East Midlands Trains there is a serious problem with management who are intent on going to war as often as possible. The company inherited many of it's senior managers from Central Trains and I remember witnessing a farsical situation in Nottingham some time ago where two managers tried to eject 50 members of an RMT anti-privatisation march from the station front as they were about six feet inside of the railway's land.

    Just intent on trouble, they are a lazy badly managed company. They left me stranded at Widnes last year during a Northern Rail strike. EMT weren't running trains to Liverpool due to engineering work 100 miles away in the midlands, and stated "Passengers should use Northern Rail services." ?!

    Using that excuse when they knew full well Northern were out on strike was disgusting, they also refused to pay anything towards a taxi, or return my calls.