Aslef Journal

13April 2010 How to run a RAILROADTO RUN A RAILROAD?OW THEM!, we can do this in the public eye.he franchise at the end of this year. That willor a not-for-profit public service serving theits shareholders.this feature we asked a couple of experts ton the UK today, and specifically how its and I hope you will respond. We know theuild a picture of a railway that people want,e future .Keith Norman, General SecretarySHIPA useful model for a better railway?the first sign of difficulty. A rail franchise seemsvery well suited to employee ownership. Afterall, success depends on serving customers well,being flexible and responsive, going the extramile. We wish ASLEF success in its campaign,and hope that the employees of the East CoastMainline will blaze a trail that others will follow.WHAT ABOUT A MUTUALEAST COAST MAINLINE?THE effects of the credit crunch have hit homeacross the real economy, and the rail industry isno exception. The country’s premier railway hasbeen taken back into state ownership and theowning groups and train operating companieshave publicly wrung their hands about thereduced margin that their shareholders arebeing forced to operate under as a result of thecontracts they have willingly entered in to.At the same time, more than half of allpassengers surveyed by Passenger Focus feelthat they are not getting value for money out oftheir journeys. One thing’s clear – something’sgot to give in the rail industry.The basic problem is a gap in ownership andaccountability. Across the majority of thenetwork there is little competition, and privatecompanies are only taking a small amount ofthe risk involved in running and investing in therailway. The privately run TOCs provide a vitalpublic service and receive large sums of publicmoney, but when it comes to the toughdecisions that need to be taken, the shareholderis king.A CO-OP IS A GOOD SOLUTIONThis is why we believe that there is a need for aco-operative train operator, and fully supportASLEF’s bid for the East Coast mainline. Thedifference between a co-operative and privateoperator would be simple – it would exist toprovide a service for its members rather thangenerate profits for shareholders. This meansthat any profits made would be reinvested intoproviding better services for passengers andreward employees for their efforts.Run democratically, on a one-member-onevotebasis, it would give real power to users andworkers – building services on the experience offront line staff and the needs of passengersrather than the interests of city investors.PRACTICAL MEASURESSo how would this work in practice?If a co-operative bid were successful, the EastCoast mainline service would be run by aThe author, Michael Stephenson, is GeneralSecretary of the Co-operative Party. Heworked at 10 Downing Street for Tony Blair,has been the Labour Party’s Policy Officer andworked in Australian politics as Chief of Stafffor both the Premier and Minister of Educationof the State of Queensland‘community benefit’ co-operative. All employeesof the co-operative and passengers on the EastCoast would be given the right to becomeindividual members of the organisation. They,and other stakeholders, would then elect aMember’s Council, which would be responsiblefor approving the strategy of the organisationand have the power to hire and fire theorganisation’s directors.The East Coast co-operative would bestructured so that all of its members had a voice.It would provide a genuine forum for informingand consulting with members of the public andemployees. It would provide information thatwould ensure that passengers and employeescould remain fully informed of progress made,as well as a means through which they couldshape the services offered.Moving to a co-operative model wouldtransform the way that services are run, andprovide a benchmark against the privatelyowned TOCs. Let’s call time on shareholderculture, and make the East Coast mainlinemutual.