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EUROPEAN REVIEW

ISSUE 25 - Page 3

EU to press on with rail liberalisation as unions, employers agree standards

THE drive to open up European railways to competition seems set to continue after the European Parliament voted for a proposal which was more radical than that arrived at by the Council of Ministers. While the Council wanted to open up international freight services from 2006 they fought shy of a date regarding passenger transport but, in October, the debate on the subject in the Parliament ended with a vote in favour of including passenger trains by 2008. Now a 'conciliation' process will come into operation to try to reconcile the two views so that the Commission can draft a directive. The aim of the parliament is that 'national borders should no longer be an obstacle to free movement by rail. In future, trains will be able to travel from Rotterdam to Rome, from Berlin to Bordeaux or from Cardiff to Colmar without having to change national staff or engines'. MEPs were insistent that the precondition for this opening of the rail market is a strict EU-wide safety regime including 'harmonised conditions for issuing driving licences to train drivers and professional qualifications for on-board rail staff performing safety tasks'. To this end a European Railway Agency should be set up in which both trade unions and employers will play a key rôle.

Austrian train in Winter

Rail Union protest in Berlin

No Austrian trains ran during November's strike

March saw demonstrations across Europe: this is Berlin

Anticipating future developments the social partners met at European level to thrash out agreements to operate in the new rail environment. The two crucial issues were licences for European locomotive drivers and working conditions for mobile workers employed in cross-border railway services. Norbert Hansen, President of the European Transport Federation railway section and chief trade union negotiator saw the agreements as 'an indispensable condition for a social, fair and safe European railway environment'. The fact that this was the first time that the rail industry had held talks under the EU's social dialogue process was noted by Johannes Ludewig for the employers: 'These first ever negotiations between the railway partners on a European level have contributed to shaping a common European market for rail transport'. The process should eventually lead to a European Directive.
At the moment four Member States: Sweden, the United Kingdom, Austria, and Germany have already liberalised their freight rail market while another six have passed laws ready for the EU decision. This has not happened without controversy however as privatisation and the splitting up of state-run operators have often been a prelude to legislation. As well as the position in the U.K., where the long-privatised system seems to be under pressure for reform in the other direction from both the unions and the public, in Austria a nationwide strike occurred in November. The right-wing government wants to split the state railway company, ÖBB, into four parts and claims that this will save about €1 billion but the Union of Railway Employees (GdE) sees this as a first step towards privatisation. The situation is not helped by plans to cut the 48,000-strong workforce by 12,000 within seven years. None of the ÖBB's 7,000 trains or 800 buses ran for two days during the strike. An international rail workers' day of action in March focussed on railway safety amid fears that liberalisation and privatisation may lead to lower standards. 'Safety must come before profit' was the simple but fundamental position of the International Transport Federation which organised the event.

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