A COURT has ruled against unions who had mounted a legal challenge to the reprivatisation of the East Coast franchise, but the unions say they will not giving up.
The RMT had argued that selling the present nationalised operation back to a private sector bidder was wrong, with its acting general secretary Mick Cash claiming that rail privatisation had been a 'disaster'.
Rail minister Stephen Hammond had responded that private sector operators had brought 'skills, expertise and innovative thinking' into the railway industry. He also defended the government's policy of reletting East Coast, saying that it was time to find 'a long-term partner' on the route.
The RMT, Aslef and TSSA had joined forces to petition for a judicial review of the government's plans, but their petition was rejected by Mrs Justice Patterson sitting in the High Court.
After the judgement, Stephen Hammond said: “This is a ringing endorsement of the government’s franchising programme and sends a clear message to those intent on pursuing an ideological argument that has no benefit for passengers.
“The decision enables us to continue to build a better railway with record levels of investment, faster trains, better punctuality and more pleasant journeys for passengers up and down the country.”
Meanwhile Mick Cash of the RMT, speaking for the three unions, said their legal battle had only reached the first stage. However, it is not clear what the timetable for a possible appeal would be.
The East Coast competition has reached the Invitation to Tender stage, and the shortlist consists of FirstGroup, Keolis/Eurostar and Stagecoach/Virgin. They must submit their bids to the DfT by next month. The winner is due to be announced in October and then take over in February next year.
Railnews understands that the present operating company is likely to be sold as a going concern, so that East Coast staff will not face a transfer to a new employer..