Friday, October 22, 2010

RMT Exposes massive increase in top salaries at Private Operating Companies



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Tuesday October 19 2010

On eve of savage cuts to transport budget RMT exposes massive increase in top salaries at private operating companies

On the eve of the government’s expected announcement of savage cuts to the transport budget, specialist transport union RMT has produced new figures showing that at a time when passengers are being warned to expect fare increases of up to 40% over the next four years it’s bonanza time in the boardrooms of Britain’s main private transport operators.

The “UK Transport Rich List” is topped by Keith Ludeman – boss of the Go-Ahead group – who saw his salary rise by an incredible 35% from £916,000 on the June 2009 figures to £1,240,000 in July this year. Ludeman is responsible for the Southern Trains franchise which recently announced it was axing toilets on the key inter-city route between Portsmouth and Brighton.

Hot on his heels are Brian Souter from Stagecoach on £762,000 and David Martin from Arriva on £743,635. (A full list is attached.) Company profits show that the big five UK transport operators have posted combined dividends of more than £2 billion since privatisation.

RMT General Secretary Bob Crow said:

“We are receiving clear signals that transport is being lined up as a prime target for the ConDem cuts with 25 to 40% expected to be slashed from budgets. At the same time fares are predicted to rise by up to 40% over the next four years.

"Cuts at the expected level will impact on jobs, safety, the range of services available and the price people pay to use them. It would also take a bulldozer to upgrading and modernisation plans leaving the UK in the slow lane yet again when it comes to green transport options.

We are also running the real risk of bus service being wiped out in rural areas.”

"Under this ConDem government the public will be forced to pay through the nose to travel on crowded trains and buses on creaking and unsafe infrastructure while the profits, dividends and top bosses salaries of the private companies are ring-fenced. That is a scandal."

Katy Clark, a member of the RMT parliamentary group and MP for North Ayrshire and Arran, has secured a parliamentary debate on “The Future of the Railway” industry on Tuesday (19th October) morning which coincides with the TUC anti-cuts lobby. Katy Clarke said:

“At a time when passengers are about to be clobbered with fare hikes and cuts in services and rail workers jobs are under attack these profits and salaries are obscene.”

“It appears corporate excess is not confined to our banks. I will be using the parliamentary debate to ask the minister to write to the train company directors to urge pay restraint and for the government to agree to a windfall tax on the profits of the privatised rail industry.”




Railway Directors Remuneration

Train company

Highest Paid Director


Arriva Group

David Martin £743,635 (31 Dec 2009)

Arriva Cross Country

199,000 (01 Mar 2009)

Arriva Trains Wales

194,000 (31 Dec 2009)

First Group

Moir Lockhead £643,000 (31 Mar 2010)

First Capital Connect

398,000 (31 Mar 2009)

First Great Western

190,000 (31 Mar 2008)

Hull Trains

Information unavailable.


429,275 (31 Mar 2009).

First Transpenine

Information unavailable.

Go-Ahead Group (65% of Govia)

Keith Ludeman £916,000 (27 Jun 2009)

                             £1240,000 (July 2010)

London Midland

Information unavailable.


Information unavailable.


358,000 (28 Jun 2008)

National Express Group

Interim 6 months ended 30th June 08

Ray O’Toole £644,000 (31 Dec 2009)


166,852 (31 Dec 2008)

Stagecoach Group

Interim 6 months ended 31st October 08

Brian Souter £762,000 (30 Apr 2010)

East Midlands Trains

Information unavailable.

South West Trains

Information unavailable.

Katy Clarke EDM below;

"That this House notes with concern reports that the government's review of the railways will lead to a significant increase in what are already the most expensive rail fares in Europe; is appalled that hard pressed passengers will be hit by these fare hikes at a time when the highest paid directors of the big five transport groups which run most of UK's train operations, Arriva, First, Go Ahead, National Express and Stagecoach have been paid salaries of between £600,000 and over 1.2 million a year, with one executive enjoying a 35% annual increase; is further concerned that this executive excess is on the back billions of pounds of tax payer subsidy to the privatised train operators; is also dismayed that whilst passengers and taxpayer are being asked to tighten their belts these companies have paid out dividends in excess of £2 billion since privatisation; believes that instead of cutting services and hiking fares the government should urgently consider a freeze in dividends and a windfall tax on the profits of the privatised railway; is further concerned that the same companies who are fleecing the railway are also lobbying for the break up and sell off of Network Rail which will create a Railtrack mark 2 which puts profit before safety; believes instead that the interests of passengers, the tax payer and rail workers would be best served by an integrated, publicly owned and accountable railway.

Strong RMT union organisation secures South West Trains staff 5.2% increase setting the benchmark for the rail industry

RAIL UNION RMT today welcomed a 5.2% pay increase – without strings - secured by the union’s negotiators for all South West Trains staff saying that it proves the benefits of strong trade union organisation and sets a pay benchmark for the rest of the rail and transport sector. The 5.2% increase will hit staff pay packets from this week.

RMT General Secretary Bob Crow said:

“At a time when the doom and gloom merchants in the press are repeating the Government line that everyone has to draw in their belts and accept cuts, job losses and austerity RMT has shown once again on South West Trains that strong union organisation delivers the goods.

“The pay award of 5.2% on South West Trains sets a clear benchmark for our negotiators and for the transport sector as a whole.

“Our members didn’t create this crisis, it was the bankers, and on the day when the return of the City bonus culture is back in the news with a vengeance we are sending out the clearest possible signal that working people don’t need to be bullied into paying the price for the greed and excess of the speculators.

“Strong union organisation is the only defence that working people have against the cuts and austerity onslaught – unity is strength.”

Yours sincerely


General Secretary

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