Rail Union Highlights Profiteering and Staff Exploitation in Outsourced Contracts
The Rail, Maritime and Transport (RMT) union has announced a major Day of Action at Manchester Piccadilly on Wednesday 19 November as it intensifies its campaign to end outsourcing across Britain’s railways.
The move follows industrial action by RMT members employed by Carlisle Support Services on Northern’s revenue protection and gate line contract. Staff took strike action over pay amid allegations of a management culture involving bullying, harassment, and intimidation.
New evidence uncovered by the RMT highlights the scale of profiteering by outsourcing companies operating across the network. The findings point to multi-million-pound dividends, heavy debt loads from private equity funds, soaring executive pay, and interest payments flowing overseas.
Despite Northern being a publicly owned operator, core station work continues to be outsourced to Carlisle Support Services, a company 68% owned by Lord Ashcroft, who resides in Belize via a nominee shareholder in Leeds. Frontline rail staff on these contracts are reportedly denied basic rights such as company sick pay.
The union’s investigation also detailed examples across the industry: Mitie paid £54.5 million to shareholders, spent £104 million on buybacks, and handed its CEO £20.5 million; OCS carried £1 billion in private-equity debt; Churchill Group owners extracted £43 million in dividends while director pay rose 230%. Other companies face similar issues, with Bidvest Noonan’s interest charges expected to hit £9 million, and SSP/Rail Gourmet paying £544 million in dividends since 2018 alongside a £100 million share buyback scheme.
RMT general secretary Eddie Dempsey said:
“Lord Ashcroft has used offshore trusts and non-dom status in Belize to shelter wealth from UK tax while holding major stakes in UK infrastructure services. He has no business being allowed to run any British company let alone one that super exploits outsourced railway workers. These companies are exploiting our members and ripping off passengers and the taxpayer by extracting wealth from the country and paying it out in dividends abroad. Our members on the Carlisle contract have shown real tenacity standing up to intimidation and will not be beaten. With Great British Railways on the way, the Government has a duty to railway workers and the public to ensure the end of the super exploitation of cleaners, gate line staff, revenue teams, dispatchers, catering and security, making sure they are brought in-house as part of a fully integrated, publicly owned railway.”
Image: RMT
