Press Release

31 March 2004

TSSA welcomes NR investment, but not changes to pensions

Good for the railways - bad for staff?

TSSA, the UK's second biggest rail union has welcomed news that Network Rail is to invest £26 billion in the railways over the next five years as announced today in its 2004 Business Plan.

The union is pleased that Network Rail is trying to bring the different sections of the railway up to the same standard and is asking it to do the same with staff.

TSSA has criticised Network Rail's decision to change the pension schemes of new staff and infrastructure workers being taken in house this summer from a final salary to a money purchase scheme.

This has been seen as a cost-cutting exercise and has had a major impact on the morale of staff who feel their pensions are being used to subsidise Network Rail's operations.

TSSA general secretary Gerry Doherty said: "Any investment in the railways is good investment as far as TSSA is concerned and we welcome the extra money to create an excellent standard of engineering across the country.

Closing its final salary pension scheme is a retrograde step.

"Network Rail is tampering with a something that could have a long term cost to the quality of its workforce. The organisation should be prepared to invest in both its current and its future employees by keeping its superior final salary pension scheme open to all new entrants."

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For further information, please contact:

Hannah Leggett (020) 7529 8059 or 07769 682806 (mobile)


Notes to Editors

1. TSSA represents 33,000 members in administrative, clerical, managerial, professional and technical jobs in the railways, buses, the London Underground, the travel trade, canals, ports and ferries, and road haulage.