
Issue No 70		07 September 2000

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News

Federal Government Blocks Rail Merger

Rail unions in New South Wales have condemned the decision by the Federal Government to block the amalgamation of FreightCorp and National Rail. The Rail Bus and Tram Union says it could cost up to 600 rail jobs.

The unions support the merger of National Rail and FreightCorp. They say the survival of rail needs the merger as part of an integrated National transport strategy.

A merger would combine the strengths of National Rail's more modern stock with FreightCorp's lucrative contracts.

The Rail Bus and Tram Union commissioned Price Waterhouse Coopers to do a report outlining different scenarios for FreightCorp's future in order to develop a position which would secure members jobs.

Of the five scenarios developed the RBTU believed the best option was for FreightCorp to buy National Rail. The Federal Government has rejected this avenue with the ideological position that State owned entities would be precluded from bidding for National Rail.

RBTU's Nick Lewocki says the next preferred option was for a joint venture with the sale of 50% of FreightCorp to be put together to purchase National Rail.

'The rejection of our proposition will result in NRC being sold for less than its capital value and have FreightCorp facing unfair competition for business, resulting in the loss of 600 jobs in the next 12 months,' he said.

Nick Lewocki says the union's resolve hasn't weakened on public ownership.

'It was our report and campaign that kept Rail Services Australia in public ownership. We regard this as a survival strategy in response to the Government's decision to sell National Rail,' he says.

Labor Council's Michael Costa says the Government should reconsider its position and conduct a more detailed study of the merger proposal.

'It's about the best business outcome that protects jobs. That is a merged entity. It's disappointing the Government is going in this direction,' he says.

The NSW Government also supports the sale of Freightcorp in parallel with the sale of National Rail Corp. In addition the Government says they will:

Guarantee to maintain budget subsidies to unprofitable country rail lines
Guarantee to maintain community service payments to subsidise the transport of grains, sugar and other goods
Provide job guarantees for Freightcorp staff for a number of years and
Guarantee to mintain the State's rail lines and passenger services in public ownership

The Government has also guaranteed public ownership and operations of STA bus and ferry services, City Rail passenger fleet maintenance and carriage cleaning, Countrylink services and on board services, Rail ferries Australia and Rail Access Corporation including Network Control.

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Issue 70 contents

Interview: New Internationalism
In its battle with Rio Tinto the CFMEU has pioneered global campaigning. National Secretary John Maitland talks to Workers Online about globalisation, a union response and using new technologies to organise .

History: Pickets and Police
S11 protestors would do well to be wary. Fred Paterson, CPA member of the Qld Parliament, was bashed by the Queensland police on St Patrick's Day 1948, when a Labor Government was in power in that state.

Education: The WEF -Why Should We Care?
An event like the World Economic Forum attracts all the spin doctors for every interest, often obscuring real issues. For educators the issues may seem remote but a closer look shows that services like public education could be dramatically affected by the unfolding agenda of global trade liberalisation says Rob Durbridge.

Economics: A Vandalised Economy
Since New Zealand was opened up to the forces of globalisation, it has performed dismally, both economically and socially. NZCTU Economist Peter Conway reports.

Unions: Our Vital Role in Society
Eight months into his new role as ACTU Secretary Greg Combet reflects on the challenges facing Australian unions.

International: Turning Up The Heat
John Sweeney of the AFL-CIO says the union movement can and will reform the global economy, for as Dr Martin Luther King taught us, the moral arc of history is long but it bends towards justice.

Satire: Threat to withhold pocket money derails S11 protest
MELBOURNE, Tuesday: Members of the activist collective S11 announced today that they had decided to cancel their protest at the upcoming World Economic Forum meeting at Crown Casino.

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