Thameslink contract reinforces the lack of competition in the rolling stock market

The Thameslink contract will exacerbate the anti-competitive nature of the rolling stock leasing market, says the TUC today (Tuesday) as the issue has been selected by the Labour Party front bench for debate to coincide with a Congress motion about the contract to be moved by ASLEF and Unite.The TUC believes that the Thameslink contract consolidates ownership in the highly concentrated and anti-competitive rolling stock leasing market, and that the government and rail regulators are failing to act to keep the market open.
The TUC had called for the decision not to award the Thameslink contract to Bombardier be referred to the Office of Rail Regulation and the Competition Commission over concerns that the contract potentially takes away fair competition and leaves the market dominated by a couple of providers.
The winning Siemens consortium is part financed by 3i Infrastructure, the Jersey-based private equity firm that also part-owns Eversholt one of the three leasing companies (ROSCOs) which control 95 per cent of UK rolling stock.
TUC Deputy General Secretary Frances O'Grady cited a Competition Commission report from 2009 that raised concerns about competition in the rolling stock market, even before the Siemens contract was won. Responding to a market investigation by the Office of Rail Regulation, the Competition Commission report found that the concentration of ownership and significant barriers to new entrants contributed to a lack of competition in the rolling stock market.
The TUC also believes that the complexity of the contract and the leasing requirement within it could be seen to favour bidders with existing capital investment functions and higher credit ratings, such as Siemens.
However, in response the Secretary of State and the Office of Rail Regulation chose not to investigate the issue of concentrated ownership arising from the design and award of the contract.
TUC Deputy General Secretary Frances O' Grady said: "Awarding the Thameslink contract to Siemens is not only terrible news for the thousands of workers at Bombardier, but it's bad value for money for the government who will be paying out benefits when they should be collecting taxes for workers leading our manufacturing revival.
"We have written to the Secretary of State and the Rail Regulator to raise serious concerns about the awarding of the Thameslink contract, as it consolidates more of the UK's rolling stock into the hands of one company. We are disappointed that the government has side-stepped this issue which has adverse effects on an already anti-competitive market.
"We also believe the way the Thameslink contract has been formulated favours a particularly financial model, which will impact on future contracts such as Crossrail.
"The government hasn't yet signed the final contract and still has time and legal power to re-examine the Thameslink bid."

Vickers should be implemented 'speedily' but more needs to be done for investment and growth

Brendan Barber

Commenting on the final report of the Independent Commission on Banking published today, TUC General Secretary Brendan Barber said: "These proposals will make banking safer, even if on a timescale that gives the banks too many opportunities to lobby for loopholes. The government must legislate speedily to ensure that the plans are not watered down.
"But they will not do enough on their own to turn banking and finance into the engines of recovery and economic growth that we desperately need. Real banking reform would put new sources of investment such as a national investment bank and proper green investment bank at its heart."

UnionNews - the news service for trade unions - launches today

UnionNews launches at TUC Congress on 12th September. Co-editor Tim Lezard explains why he founded an on-line news service for trade unionists
As a journalist and activist I’ve spent more years than I care to remember promoting trade unions, so it’s rather nice to have the compliment returned and having trade unions promoting UnionNews.
For in Sunday’s Observer, three general secretaries pinpointed why there is a need for UnionNews.
There was Len McCluskey from Unite saying: ‘When anything’s reported, it’s strikes and disruption, even though 90-odd% of the time we’re involved with companies and organisations, it’s helping, adding value.”
The NUT’s Christine Blower added: “There aren’t a lot of positive demonstrations of trade unions in the media”, with the RMT’s Bob Crow agreeing: “The media are hostile – they have a go at unions – because they think there’ll be infringements on their profit line.”
Like them, I have long been concerned by the poor and unbalanced coverage in the media of trade unions and the lives of their members. UnionNews will redress that balance by reporting news from a trade union perspective.
Together with my co-editor, broadcaster and video journalist Pete Murray, UnionNews will apply strong news values to all our stories, using a nationwide network of NUJ freelance reporters and photographers to report on conferences, strikes, campaigns, events and other issues of interest to trade unionists, both at work and outside the workplace.
Adhering to our maxim ‘investigate, collaborate, agitate’, we shall also write in-depth features, carry academic research and report on legal cases affecting trade unionists.
Activists are our target audience, so we’ll be encouraging you to join on-line union campaigns, to post on solidarity message boards during strikes, to make donations to strike funds and use our soapbox column to get your message across.
Our editorial policy is one of strict independence. We are affiliated to no political party and shall apply the same news values to all stories carried on our website, regardless of which union they feature.
Sounds good? Don’t take my word for it. Listen to what NUJ General Secretary Michelle Stanistreet has to say: “I welcome the arrival of UnionNews because it’ll give unions the coverage they deserve at the same time as connecting activists from all unions together to create bigger, and more successful campaigns. I shall certainly be encouraging our members to log on.
You heard her – what’s stopping you from logging on?
www.union-news.co.uk is live now!

Bringing the Chainmakers home - Tickets now on sale

This year will see the Women Chainmakers festival at a new home - Bearmore Park in the centre of Cradley Heath, right at the centre of where the historic dispute was played out to a successful conclusion.
There is a small entrance fee to the festival this year - £5 for adults, with children 16 and under entering for free. Tickets are available from:

Midlands TUC
24 Livery Street
Birmingham
B3 2PA

Tel: 0121 262 6383
email: midlands@tuc.org.uk
Cheques payable to the TUC

March and Rally - Birmingham for the Alternative

This year the Lib Dems are having their annual conference in Birmingham and the TUC is organising a march and rally to show opposition to the Coalition Government's disastrous policies of pay freezes, cuts and attacks on public services that are producing rising unemployment, cuts in living standards and stagnation. The march will also show the support for The Alternative. We need jobs, growth and justice for a sustainable future and this event will send that message loud and clear.

Date: Sunday 18 September

Assemble at 11 am on Granville Street B1 1JW
Speakers include: Frances O'Grady, Deputy General Secrtary of the TUC, Billy Hayes CWU, Mark Serwotka PCS, Christine Blower NUT, Paul Kenny GMB
We call for the maximum support and are specifically asking unions and trades councils to:

•Encourage all your members to attend, a flier is available to download [PDF] and printed copies are available, to order leaflets e mail mkesterton@tuc.org.uk clearly stating the number of leaflets wanted and a postal address for delivery, allow 5 working days for delivery ,

•Let us know if you are booking transport and we can give advice on drop off, parking and collection,

•To ensure that we have an effective and safe event we need a number of stewards and all affiliates are asked to nominate a number of stewards, please e mail contact details of potential stewards to mkesterton@tuc.org.uk

•Consider making a donation to help fund the campaign.

There will be provision for marchers with disabilities, including a short route. It would be helpful if organisations could give as an indication of what their members access requirements are and we will do our very best to ensure that they are met.

Loss of Thameslink contract will lead to job losses all around the UK, says TUC

Commenting on the results of a business survey published by Unite today (Tuesday) which shows that there will be job losses throughout Bombardier's UK supply chain following the government's decision not to award the company the Thameslink contract, TUC Deputy General Secretary Frances O'Grady said: "The government's short-sighted approach to procurement is causing economic shocks that are reverberating through Britain's supply chains. The award of the Thameslink rolling stock contract to competitors in Germany is hitting jobs and business not only at Bombardier's plant in Derby, but among their suppliers throughout the UK.
"This truly is a false economy. What may seem like short-term savings for the Exchequer are causing long-term losses for the UK as we continue to shed skilled jobs in key sectors of our economy.
"With economic growth virtually at a standstill, the government urgently needs an effective industrial strategy that brings jobs and business back to our manufacturing sector. The government must use its spending power to invest in getting our economy back on track and people back to work.
"Tomorrow MPs will hear industry experts, business representatives and unions all make the case for reviewing the Thameslink decision. It is still not too late. We urge the government to reconsider its position and do what is best for our jobs, communities and economy."

For more information go to:
The detailed findings of the survey are available at http://survation.com/2011/09/bombardiersiemens-supply-chain-survey-by-survation-for-unite-%e2%80%93-tuesday-september-6th/
For more details please contact the Unite press office.
The Select Committee hearing on the Thameslink contract takes place tomorrow (Wednesday) morning in Westminster. To coincide with the meeting, the RMT will be bringing together representatives of the Derby Bombardier workforce, councillors, MPs and unions representing Bombardier staff. For more information please contact Geoff Martin in the RMT press office on 07831 465 103 or email G.Martin@rmt.org.uk

Online campaigning for the NHS

Have you seen our online plans on NHS campaigning? We’ve several campaign actions live now, building for the vigils around the third reading and passage over to the Lords. These are all currently being linked in from the campaign hub we are building at the All Together for the NHS site: www.tuc.org.uk/NHS 

Photo mosaic

Users can upload their faces to be included in a giant photo mosaic of a candle. We will be printing a large version of this to lobby with but also making it available to browse interactively and share online. We need around 3000 faces to make this a decent image (more is better!), so your help in spreading the word as widely as possible will be invaluable please.

The URL for this is http://www.goingtowork.org.uk/nhs-mosaic

Personal vigils

We’ve a pdf poster for people to display in their windows in the run up to 6/7 Sep, and are also asking people to add profile buttons on Facebook and Twitter (either a logo or a provided link to a Twibbon). We hope to be advertising union-organised local events that people can attend when we receive details.
The URL for this is http://www.tuc.org.uk/industrial/tuc-19938-f0.cfm 

Adopt a Peer

We have a campaign tool that matches people up with members of the House of Lords, and helps them to write emails or letters to their allocated Peer. We will be using this to better effect by asking people to return to ask more specific points on amendments as it is debated in the Lords. Again, if you’re able help us with getting more people to take this action please, it’d be really useful, to make sure each Peer gets a good number of contacts.

This is at http://www.goingtowork.org.uk/peers

Please pass on this information - and sign up yourself for the actions above and do your bit to save our NHS!