Yahoo News Starmer pledges to avoid repeat of Hitachi jobs scare as Labour unveils sweeping rail reforms
Keir Starmer has promised sweeping reforms to Britain’s railways that Labour claims would prevent a repeat of serious job loss worries at a North East train manufacturer.
The Labour opposition leader visited Hitachi’s Newton Aycliffe plant on Thursday, as his party announced major plans to renationalise the country’s passenger rail services if elected. Hundreds of staff at the train factory are facing uncertainty over their jobs, amid warnings over a gap in orders that has cast doubt over the Japanese giant’s future in the region.
The Government has been urged to step in and trigger an extension to Hitachi's contract to build trains for the West Coast line in order to protect its 750-strong workforce, while there was news last week that fellow manufacturer Alstom’s Derby base looks set to be handed a lifeline with a deal to new build carriages for the Elizabeth Line. Shadow Chancellor Rachel Reeves claimed in an interview with the Local Democracy Reporting Service earlier this month that the process of laying off Hitachi staff in County Durham could start in June if there was not a breakthrough before then.
Sir Keir pledged on Thursday that a Labour administration would end a “boom-and-bust cycle” for rail manufacturers with a “long-term strategy” offering far greater certainty over future contracts. But Tory transport secretary Mark Harper has accused Labour of being “dishonest to the workforce” at Hitachi by “pretending that there are simple solutions to complex problems”.
After meeting with Hitachi staff and management at the plant, Sir Keir repeated calls for ministers to act now to save Hitachi. The Labour leader said: “The Government needs to step in. We have been talking to the workforce here today and they are very concerned about the situation, as are we. My frustration and [shadow transport secretary] Lou Haigh’s frustration is that this is a known problem.
“A contract coming to an end and a gap before the next contract is a known problem that the Government has known about for a very long time and they have done nothing about it. I don’t think it is going to sit very well – with the workforce here, their families, all the jobs that feed into this, and the area which is very proud of Hitachi – for the Government to say, as it always does, that it is not our problem and point at somebody else.
“It is not good enough. There are options for the Government, they need to exercise them. We have said to the workforce today that we will press them to exercise those options even from opposition. If we are privileged enough to come into power, we will then have a strategic plan to ensure that the workforce are not put in this position over and over again.”
Earlier in the day, Mr Harper told media that the ball was in Hitachi’s court to come up with options and that Labour’s suggestions were not feasible. Ms Haigh responded that it was “really disingenuous” to suggest Hitachi had not come forward with plans and accused the Government of “constant buck-passing”.
Mr Harper told the Local Democracy Reporting Service afterwards: "The Government is committed to supporting the train manufacturing sector including Hitachi. I have met with Hitachi on numerous occasions to try and work towards a viable solution and just last week I met with union reps from Newton Aycliffe with Paul Howell MP.
"Unlike Labour, I will never be dishonest to the workforce by pretending that there are simple solutions to complex problems. I continue to be focused on getting to a sustainable solution for Hitachi and the workforce in Newton Aycliffe."
Hitachi has said previously that it is “committed to working with all stakeholders to find a viable way forward” and argued that safeguarding its plant was “in the national interest”.
Labour’s rail reform vision could see it bring all existing private rail contracts back under public control within five years. Three major rail operators running in the North East – LNER, TransPennine Express, and Northern – have already been brought under the Department for Transport’s control by the Tories.
The major proposals announced by Ms Haigh on Thursday also include plans to bring in automatic delay and cancellation refunds, make digital season tickets available across the rail system, and make timetables, tickets and fares more integrated.
The Government’s own proposals for rail reform, published in February, include creating a new public sector body named Great British Railways (GBR) responsible for rail infrastructure and awarding contracts to operate services. But Labour plans to establish a “unified, publicly owned, accountable and arm’s length” version of GBR led by rail experts rather than Whitehall.
