The RMT union has called on the UK government to end the outsourcing of rail services, estimating that six major private suppliers made £152m in profits last year from contracts on the national railway and London Underground. The union argues that these profits could be reinvested into the railway instead of being siphoned off by private firms.
Analysis by the RMT identified Mitie, OCS, Bidvest Noonan, Churchill, Carlisle and ABM as the main contractors, with profit margins averaging 11%. The union claims that many contracts pass on cost increases, such as minimum wage rises, back to the government, shielding profits at taxpayer expense.
Rail minister Lord Hendy said railway leaders should “think afresh” about outsourcing and consider what is best for customers. He noted that the railway is full of contracts producing confusion, and supported the new Great British Railways (GBR) in making choices about insourcing.
The RMT’s general secretary, Eddie Dempsey, described outsourcing as a “racket” and urged Labour to fulfil its manifesto commitment to the biggest wave of insourcing in a generation. Mitie defended its role, stating it brings innovation and value for taxpayers, while ABM disputed the RMT’s figures but committed to collaboration.
