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Labour cost inflation could hit investment

“Failure to run services has serious consequences - loss of revenue, loss of reputation, loss of credibility among investors, reduced margins, and political pressure to ‘sort this out’,” writes Chris Cheek in a comment article.

He focuses on the issue of rail industry labour costs, highlighting the dispute being the rail unions and Govia Thameslink Railway over the use of Driver Only Operation, and saying that giving drivers control of the doors would eliminate delays, making rail journeys faster and more attractive, and thus ensuring greater efficiency.

Without such methods of controlling cost inflation, higher costs would reduce the Benefit:Cost Ratio of schemes and reduce the chances of marginal schemes being funded at all.

  • We've read it in: Passenger Transport, June 24 2016, Issue 137, p26