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Train company to axe 480 jobs


A LEADING train company plans to axe 480 jobs including those of managers and admin staff, it was announced.

South West Trains, which operates services throughout southern England and into London's busy Waterloo station, said it could not rule out compulsory redundancies.

"In common with other rail operators we have carried out a review of our cost base to ensure we are operating as efficiently as we can in view of reduced passenger growth and an increasingly challenging economic climate.

"We are proposing to reduce the costs of our rail operation and make some changes to the way we manage our business but we will continue to operate the same number of train services for our passengers."

The Rail, Maritime and Transport Union said the job cuts were "unjustified" and would be resisted.

SWT said train drivers, guards and frontline maintenance staff would not be affected by the proposed cuts. The company said that subject to consultation with staff, it would reduce around 480 management, administration and other roles across the company.

Taking into account existing vacancies and posts which have been withdrawn, the company said the actual number of people leaving would be around 200.

"We hope to achieve some of this through natural turnover or voluntary redundancy. However we cannot rule out compulsory redundancies. Our priority throughout this process has been to protect the core frontline service and excellent performance we currently provide to our customers."

The company said there would inevitably be changes to how it manages a number of its operations, adding: "We are very aware that these proposed changes will be difficult for this staff affected.

"But we are all aware we are operating in an unprecedented economic environment which is affecting all areas of the economy from the public sector and voluntary organisations to small businesses and major companies. We expect this challenging climate to continue through 2009 and 2010."

Comments(2)

Upkeep says...
9:46am Fri 16 Jan 09

Hearsay has it, that when SWT bidded for the current franchise they got their sums wrong. They were so desperate to get their greedy paws on the franchise they bidded twice as much as the nearest bidder. For the last 10 years SWT has been paid millions by the taxpayer to run a train service, yes SWT has provided a service but where do you think those millions have gone ? Yep, shareholders !
Now from this year SWT have got to start paying the government £££`s to operate the franchise. They know they cocked up the franchise bid and now in order to keep the operating margin and keep paying the dividends then staff will have to go. Oh well.
In 2006 SWT profits was £137 million. It will be interesting to see what the 2009 profits will be. I`m sure they dont need to make staff cuts, but what better time to reduce costs when so many companies are having to do the same for genuine reasons.

amused says...
9:51am Fri 16 Jan 09

It is such a shame, more job losses, and it does seem that staff have to lose jobs when it seems to be the people who runSWT at fault. After they charge enough for fares and they apparently are going up again. I read that firms profits are down, not necessarily making a loss, but just less profit and straight away they cut staff.


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