First privatised train operator axes 125 jobs

CHRISTIAN WOLMAR

Transport Correspondent

South West Trains, which became the first privatised train company when it was taken over by Stagecoach, Britain's largest bus operator, earlier this month, is to shed 125 jobs in an effort to reduce costs.

The jobs to be cut - from a 4,000-strong workforce - are mainly white- collar posts, ranging from senior managers to wages clerks, but further job cuts are expected to be made as Stagecoach is receiving less subsidy than British Rail got to run the services.

The company will at first offer voluntary severance, under the same terms as BR's old agreements, but warned that "a number of redundancies" may be necessary. While most of the staff are behind the scenes, a few station staff are also involved.

The cuts follow the company's first review of staffing arrangements and Peter Field, the managing director, warned that this was the first of a series of cuts in the workforce. "There will be further reductions in staffing levels resulting from restructuring proposals and organisational changes." He said discussions with the trade unions were being held.

South West Trains, one of two lines to be privatised earlier this month, is one of the largest operators on the network and runs most of the services out of Waterloo. Stagecoach narrowly beat off competition from the management buy-out team, backed by Compagnie Generale des Eaux, which, it is thought, was seeking only 1 per cent more subsidy.

Stagecoach will receive pounds 54.7m next year as a subsidy to run services, compared with the pounds 63.5m BR received, and so far the company has refused to say whether this will lead to reductions in services. With such a sharp reduction, job cuts were always seen as inevitable by rail analysts, but the speed of Stagecoach's decision has surprised the industry.

Mr Field said the job cuts would not compromise safety. "We will of course do nothing that will compromise our position on safety, our Passenger's Charter commitments or those of our franchise contract."

Stagecoach's announcement follows the takeover of BR's three heavy freight companies at the weekend by the US-owned Wisconsin Central and warnings by Ed Burkhardt, who heads Wisconsin, that job losses among the 7,500 staff are inevitable. Unions suggest that 3,000 jobs could go at the three newly merged companies.

t InterCity Cross Country, one of the 25 new train companies, has been advising its passengers to complete their journeys by bus, rather than using trains run by other operators, in its passenger magazine, XC.

Keith Bill, of Save our Railways, said: "This magazine tells passengers to take one of their trains to one of their stations, but then change on to a bus to tourist attractions." A Cross Country spokeswoman said: "This is an error. We will be altering it in future issues of our magazine."