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| Rail fares rises: Grayling pleads with unions and train firms | |
| (about 1 hour later) | |
| The rail industry should change how it calculates fare rises and staff wages to cut costs for passengers, Transport Secretary Chris Grayling has said. | The rail industry should change how it calculates fare rises and staff wages to cut costs for passengers, Transport Secretary Chris Grayling has said. |
| He has asked train operators and unions to use a different inflation measure, the Consumer Prices Index (CPI), to determine rail fare and wage increases. | He has asked train operators and unions to use a different inflation measure, the Consumer Prices Index (CPI), to determine rail fare and wage increases. |
| This is lower than the current tool used, which includes mortgage costs. | This is lower than the current tool used, which includes mortgage costs. |
| But the RMT union said it opposed Mr Grayling's call - made hours before January's rail fare rise is announced. | But the RMT union said it opposed Mr Grayling's call - made hours before January's rail fare rise is announced. |
| Mick Cash, leader of the Rail, Maritime and Transport union, said it would fight any attempt to impose a "pay cap" on its members in a drive to protect private train company profits. | |
| "This is a basket-case government and a lame duck transport secretary continuing its all-out war on staff and passengers alike," he added. | |
| Shadow transport secretary Andy McDonald said Mr Grayling was in charge of how much firms could raise regulated fares by. | |
| "He has the power to enforce this, he's just choosing not to. | |
| "The truth is that our fragmented, privatised railway drives up costs and leaves passengers paying more for less," he said. | |
| Fare rise due | |
| Fares are expected to go up by 3.5% at the start of the next year. | Fares are expected to go up by 3.5% at the start of the next year. |
| The exact increase will be announced on Wednesday when official inflation figures - used to set the price increases - for July are published. | The exact increase will be announced on Wednesday when official inflation figures - used to set the price increases - for July are published. |
| Economists are predicting that the Retail Prices Index (RPI) measure of inflation - the number used by the Department for Transport to set rail fare increases - will increase by 3.5%. | Economists are predicting that the Retail Prices Index (RPI) measure of inflation - the number used by the Department for Transport to set rail fare increases - will increase by 3.5%. |
| This year rail fares rose by 3.6% - the biggest jump for five years. | This year rail fares rose by 3.6% - the biggest jump for five years. |
| 'Keep costs down' | 'Keep costs down' |
| Mr Grayling said he wanted to see "lower levels of increases for passengers in future". | Mr Grayling said he wanted to see "lower levels of increases for passengers in future". |
| "This will require a move away from the use of the Retail Prices Index in the way the industry operates to the more commonly used Consumer Prices Index," he wrote in his letter. | "This will require a move away from the use of the Retail Prices Index in the way the industry operates to the more commonly used Consumer Prices Index," he wrote in his letter. |
| He said pay deals should also be based on the same, lower measure. | He said pay deals should also be based on the same, lower measure. |
| "I support paying rail staff decent wages for the hard work they do, but I also now believe it is important that pay agreements also use CPI and not RPI in future," he said. | "I support paying rail staff decent wages for the hard work they do, but I also now believe it is important that pay agreements also use CPI and not RPI in future," he said. |
| Mr Grayling urged the rail companies' membership body the Rail Delivery Group to help the government move towards using CPI for future pay deals. | Mr Grayling urged the rail companies' membership body the Rail Delivery Group to help the government move towards using CPI for future pay deals. |
| He said the move would help the industry to "keep costs down". | He said the move would help the industry to "keep costs down". |
| The letter was sent to all the rail unions, with a separate letter sent to Paul Plummer, the chief executive of the Rail Delivery Group, asking for his support. | The letter was sent to all the rail unions, with a separate letter sent to Paul Plummer, the chief executive of the Rail Delivery Group, asking for his support. |
| The TUC union earlier calculated that rail fares had risen over twice as fast as wages over the past decade. | The TUC union earlier calculated that rail fares had risen over twice as fast as wages over the past decade. |
| Wednesday's fare hike comes after a summer of chaos for many train customers, after a rail timetable overhaul saw scores of cancellations and delays. | Wednesday's fare hike comes after a summer of chaos for many train customers, after a rail timetable overhaul saw scores of cancellations and delays. |