Great Western Coffee Shop

I havn't been able to find out much info yet, but I have found out that Stagecoach, which runs SWT, are to axe 650 jobs from the SWT area of their business.  This is due to a fall in the number of passengers using this service to London Waterloo. 

Once I find out more, I will post in moree detail!!

If anyone else can find out more information, that would be much appreciated!!

A fall! :o

I suppose it must be the lost jobs in the City (plus the sky high fares and overcrowding on the Waterloo and City line).

A big shame, as it may scupper hopes for new platforms in the old Eurostar terminal).

See http://news.bbc.co.uk/1/hi/business/7762173.stm

The problem is that all the franchises have their subsidy/premium profile based on a fairly aggressive increase in revenue (and thus number of passengers).

So let's say in 2008 passenger volumes and revenues are flat against 2007 (which was 5% up over 2006), and there is a 5% reduction in 2009. Now this may only take the situation back to roughly the 2006 volumes, but in terms of the subsidy/premium expected, this would have expected 2009 revenue to be around 15% higher (all figures exclude for the moment inflation.)

So even if in 2009 the railway is still carrying the numbers of passengers it did in 2006, it can't afford to, because the franchises will be losing vast amounts of money. Hence the need for paring costs in any way they can. It's a fundamental flaw in the way the franchises were let, in that they assumed that the good times would always continue.

It will be very interesting to see how the government reacts to this. Paring costs is likely to be hugely damaging to both the railway with passenger volumes still historically high. (Anyone remember how the busmen who first ran SWT screwed up post privitisation by thinking they could slash the workforce?)

But the only alternative is for the government to renegotiate the franchise terms. If they don't then there is a real risk that some of the franchise holders will hand in the keys, rather than lose money hand over fist. Though of course if you hand in one franchise you hand in the lot, so there will be a lot of hard thinking.  I bet the bids for the new South Central franchise are going to be much more conservative though.       

I thought the whole point of a franchise was that the farnchisee ran all the risks. So that if they can't meet their committments then they go bust and their shareholders suffer.

It is dead easy for BR to pick up the franchise run it like South Eastern. If several went bust at once then you have the makings of a new BR.

After all the EU directive only requires the cost of infrastructure and train running to be accounted for separately. Look at France their infrastructure company equivalent to Networkrail contracts all the work to SNCF.

 Heard that FGW are also looking to axe jobs.

 Apparently front line staff from all parts of the region, mainly ticket office/platform staff.

One of the platform staff at a major junction on the GWML told me that platform staff are being axed at his particular station.  That said, FGW have used trained agency staff on gateline duties.

I note that all former agency gateline staff are being brought in house.  (Source  Current RMT Magazine).

(Edited to include gateline update.)

There are lots of OTT rumours about job losses going around.  I was told that people were likely to be 'moved around' rather than lose their jobs.  I was also told about some of the changes, but at this stage it would be wrong I feel to discuss this here.

As usual though 'Brother Bob' and his Union bandwagon will be ready for action  ::) ;D

Hang on... I thought FGW were hiring more staff to cope with shortages!