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Rail fares rises: Grayling pleads with unions and train firms | Rail fares rises: Grayling pleads with unions and train firms |
(35 minutes 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, lower, inflation measure to set pay and fare increases. | |
The RMT union said it opposed Mr Grayling's call - made hours before January's rail fare rise is announced. | |
The shadow transport secretary said Mr Grayling "had 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," Andy McDonald added. | |
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. | 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. | "This is a basket-case government and a lame duck transport secretary continuing its all-out war on staff and passengers alike," he added. |
Fare rise due | 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". |
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, the Retail Prices Index (RPI), which includes mortgage costs. | |
"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. |