ROLLING STOCK
In a decision with huge consequences for both rail workers in Derby and perhaps future UK policy on manufacturing, the Government picked Siemens over Bombardier to supply Thameslink rolling stock. RTM reports.
M
ore than 400 permanent and nearly 1,000 temporary jobs are
to go at Derby’s Bombardier in the wake of the Government’s decision to hand the Thameslink rolling stock contract to Germany’s Siemens, prompting threats of possible industrial and legal action from un- ions, and much soul-searching over succes- sive UK governments’ failure to champion British business in its procurement policies.
Bombardier is a Canadian company, but is the last train manufacturer in the UK, and has said there will not be a suffi cient work- load to keep its facilities operating at cur- rent levels. It is in the middle of a 90-day statutory downsizing consultation process.
By September, it will have completed its orders for London Underground’s Victoria Line, and Turbostar DMUs for London Midland. Its SubSurface Lines contract will still be running, but will not provide enough work alone to keep operations at their existing level. In total, 446 permanent jobs are to be axed, alongside 983 tempo- rary contract staff.
There are now doubts that the company will have the scale to compete with foreign fi rms to win HS2 or Crossrail rolling stock contracts.
Knock-on effects Labour’s
protest in Derby on July 23. Bombardier’s Derby site employs 3,000 people directly, and around 12,000 indirectly through its supply chain.
Mark Young, regional co-ordinating of- fi cer for the Unite union, said: “The Government’s decision to award this con- tract to a consortium which does not have British manufacturing and British job creation as its prime focus is absolutely disgraceful.”
The union has claimed that recruitment agencies acting for Siemens are trying to bring Bombardier staff on board – espe- cially its procurement and sales staff. But Siemens dismissed this as a “rumour” and reminded people that it has not technically won the contract yet, just been named pre- ferred bidder.
Changing the rules
Transport Secretary Philip Hammond de- fended the decision to go with Siemens, but acknowledged the controversy, saying: “It is the correct decision within the terms that were set out when the procurement was launched. I think the question is whether
Siemens’ UK credentials shadow business and trans-
port secretaries have written to the Prime Minister to ask for a review of the decision to award the contract to Siemens, which they say “dealt a body-blow to British manufacturing” at Bombardier. Shadow Business Secretary John Denham and his transport counterpart Maria Eagle say the choice to send so much of the work abroad to Germany could affect up to 20,000 UK jobs.
The RMT said it may challenge the Government’s decision, arguing that the effect on the East Midlands’ economy was ignored during the contract process. It is taking legal advice, ahead of a planned
100 | rail technology magazine Jun/Jul 11
Siemens has a much greater UK presence than some reports would have readers believe.
It has been present in the country for 168 years and has around 16,000 UK employees in total, half of whom are involved in manufacturing and engineer- ing. It has 13 manufacturing sites in the UK, and is in the process of building a new wind turbine factory in Hull, creating around 700 jobs. In June, it announced it would be establishing a new Renewable Energy Engineering Centre in Manchester, opening next year, creating up to 340 electrical engineering jobs.
It already has 650 UK employees involved in the ser- vice and maintenance of rolling stock, and in response to the “signifi cant professional skills shortages” in UK transport, it has recently pledged to establish a UK Rail Training Academy, in support of NSARE.
the procurement was correctly framed.
“The way some of our continental part- ners approach these things is to look more strategically at the support of the domes- tic supply chain and it is clear because the French routinely award contracts for trains to French builders and the Germans award contracts for trains to German builders.
“It is clear that it is possible to structure the contracts such that, even within the constraints of the European procurement directive, there are much greater chances of the domestic supply chain succeeding. I think we have got to look at how we man- age these things for the UK in the future.”
However, he has ruled out re-opening the process, despite considerable pressure to do so.
Peaks and troughs
Many commentators and civil leaders in the East Midlands have been speaking in very dark terms about the likely fall-out of the decision on manufacturing in their re- gion. However, the Derby and Derbyshire Rail Forum (DDRF) has tried to stay more upbeat, saying there would be plen- ty of chances for its members in the East Midlands to contribute to the Thameslink work.
It is hardly unusual for major train compa- nies to work together – indeed, Bombardier Transportation itself has a multi-billion euro contract with Siemens as a key sup- plier in the construction of 300 ICx high- speed trains for Deutsche Bahn.
But the DDRF conceded that the news is “devastating” for the rail workers affected and the wider community, and blamed the failure of “successive governments” to ad- dress the peaks and troughs of rolling stock demand.
It added: “The DDRF therefore calls upon the present Government to follow the rec- ommendation of the McNulty report and
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