BY PETE CLIFFORD
LONDON - Workers at Eurostar, the Channel Tunnel passenger rail company, are facing new threats against jobs, working conditions, and safety by the owners of London and Continental Railways (LCR). The consortium, which says it has a debt of 420 million (1=US$1.60), claims it cannot raise the capital to build a high speed line between London and the Channel Tunnel.

When LCR bought the rights to build the line in 1996 for just 3 billion, Eurostar and other assets worth 5.7 billion were thrown in free as part of the deal. On Jan. 29, 1998, the government responded to LCR's demand for 1.2 billion extra government cash by initially giving them 30 days to find new sources of investment or lose the project.

In a front page article in the London Times entitled, "Eurostar Rail service to be nationalised," Deputy prime minister John Prescott was quoted as saying, "Preparations will be made for an orderly hand over of the business to the public sector." Some workers at Eurostar believed this meant a secure future for them.

As the days went by, it became clear the government's concern was to ensure long-term profitability of the entire newly privatized rail network, including Eurostar, not to run the rail network as a "public service." Prescott has extended the deadline for resolving LCR's future until May 29 to allow the government to secure new private investors. The concern of Britain's rulers is partly fueled by rivalry with other European countries. Labour Member of Parliament (MP) Derek Foster commented, "How would [British prime minister] Tony Blair be able to take the lead in Europe, if we can't even build a fast link to the continent?"

Eurostar has been portrayed as the flagship of the newly privatized rail companies. Its profits were to be used to fund the building of the high speed link. To achieve this, LCR had to compete for cross-channel traffic with the ferry companies. In response, rival companies P&O European Ferries and Stena Line have merged, cutting their workforce in the process. Together with "Le Shuttle," the car train, they account for 80 percent of the crossings from Dover, England, to Calais, France, showing that Eurostar has so far been unable to dislodge its rivals.

Eurostar's profitability was hit by the fire that took place in the Channel Tunnel Nov. 18, 1996. The fire, which took nearly 14 hours to put out, damaged 600 meters of the tunnel. It started on a train that was transporting freight trucks. The Fire Brigades Union (FBU) maintained that the semi-open wagons carrying the trucks were unsafe, and called for a public inquiry. This never took place, and the semi- open wagons are still used by "Eurotunnel," the company that built the tunnel and runs its freight service. Recently there was an attempt to blame French truckers, who have been involved in a long running dispute with Paris, for supposed sabotage.

`Restructuring' cuts jobs, safety
The crisis facing LCR is a watershed for the 25 rail companies that have been sold to private capitalists. The government initially gained substantial revenue through the sell-off, and large short-term profits have been made by some of the operators, who have sought to make inroads against workers' rights and working conditions as part of the "privatization" process. These profits have been inflated by government subsidies. Last year the rail companies received 1.8 billion in government subsidies, double the amount paid to British Rail, the former state- owned railway system. The government's plan to reduce the subsidy and deflationary pressures from the economy threatens to push down the new companies' profits, serving as a pretext for more attacks on jobs. Last summer 500 train drivers working for Connex South Central took action to protest the imposition of a new pay and conditions package that included wage cuts. On March 11 South West Train's (SWT) announced its intention of cutting hundreds of train- guards jobs, so the driver has sole operational responsibility. Currently the guard is responsible for the safety of the train. Similar "restructuring" moves are taking place in other companies and meeting a response from workers.

Railtrack, which owns the rail infrastructure, is the main company the government is negotiating with to take over the building of the channel tunnel high speed link. Its market value has more then doubled since privatization to 4.7 billion, and its profits have been made at the expense of safety. Railtrack announced March 2 that it aims to save 80 million on its repair bill this year, a 25 percent cut.

In February 1997 an accident at Bexley, South East London, was initially blamed on the driver. After it was revealed by track workers that faults had been reported months before and nothing had been done the government agency, the `Health and Safety Executive' (HSE) prosecuted Railtrack. In September 1997, seven people were killed, and 160 injured in another rail crash at Southall. Reaction to that wreck has led to the government conceding a public inquiry.

In another accident in August 1996, which killed one person, train driver Peter Alford was indicted on a manslaughter charge. He was acquitted March 12, 1998. With backing from the drivers trade union ASLEF, Alford's defense argued that deficiencies in the track and signaling system turned a minor driver error into a major crash.

At Eurostar's Waterloo terminal, on the day LCR's crisis was announced, a team leader went around telling workers "This isn't a holiday camp you know!" Some workers said it would be better for them if Eurostar was taken over by the government. Others felt a change of management would not make any difference, and the pressure on workers to work harder and increase productivity would continue.

Behind the smart corporate image Eurostar projects is a growing move to make workers pay for its crisis. At the center of this is an annualized hours system, which allows management flexibility over shifts without paying extra wages. At the Eurostar engineering depot, they have been trying to increase the proportion of night shift from 50 to 60 percent and to cut the number of workers in the maintenance teams. Workers at a number of well-attended meetings of the Rail, Maritime and Transport union (RMT) have discussed resisting the extension of hours. The company uses subcontractors for cleaning, security, and food preparation, allowing the contracting firms to pay substantially lower wages. It also uses this to threaten Eurostar workers with "contracting out" their jobs.

`Privatization' of London Underground
The rail unions' response to the LCR crisis and other job issues facing workers in rail is to blame privatization, heralding the "golden days" of the state-run British Rail. RMT officials have called in the short term for the government to buy up shares in Railtrack, and in the longer term to re-nationalize all the rail companies when their franchises expire. The union leadership's efforts have been focused on opposing the privatization of London Underground (LUL), the last substantial state-owned part of the railways. A union leaflet headed, "If Rail Privatisation doesn't work, why should it work on LUL?" points to the way the New York subway, and the Paris metro are funded without mentioning the sharpening assault by LUL today against its workers.

For example, the lack of guards on LUL trains, and workers staffing platforms has directly affected safety. On February 11 an LUL train was so full that the pressure of passengers bust open the sliding doors in a tunnel during rush hour. LUL pays out 19,000 as compensation to the 12,000 people who complain about the service each week.

John Prescott announced March 20 that LUL's track, signaling, and rolling stock would be privatized with LUL just running the train service and paying charges to the new private owners. He claimed this is "not privatization nor nationalization but a new third way," and refused to guarantee fares would not rise or that jobs would not be cut.

Rail workers on LUL have been responding to the attacks on jobs and conditions by taking action. On March 26 guards on the Northern Line of LUL struck to protest the bosses' refusal to allow guards displaced by moves to driver-only operation to choose which depot they would work from. A further day of strike action drew broader support on April 9. Guards on the LUL Northern line are now planning another strike day in conjunction with drivers for May 1.

Pete Clifford is a member of the Rail, Maritime and Transport union in London.  
 
 
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