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| Businesses count the cost of Southern rail disruption | Businesses count the cost of Southern rail disruption |
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| It’s been a summer of travel misery for businesses that use Southern Railway. In July, following numerous cancellations and delays, Southern implemented a reduced timetable, cancelling approximately 341 trains a day. It says some have since been restored, but the service remains unreliable. Operating company Govia Thameslink Railway (GTR) is at loggerheads with the RMT union and its passengers have endured several strikes, with more on the cards. | It’s been a summer of travel misery for businesses that use Southern Railway. In July, following numerous cancellations and delays, Southern implemented a reduced timetable, cancelling approximately 341 trains a day. It says some have since been restored, but the service remains unreliable. Operating company Govia Thameslink Railway (GTR) is at loggerheads with the RMT union and its passengers have endured several strikes, with more on the cards. |
| The impact on the economy is substantial. Southern is the UK’s largest rail franchise, covering routes from Sussex, Surrey, Hampshire and Kent into London. GTR, led by CEO Charles Horton, also operates the Thameslink, Great Northern and Gatwick Express rail companies, and its parent company, Govia, runs London Midland and South Eastern train companies. So the trouble has implications for other parts of the country, too, and other rail companies are doubtless keeping watch. | The impact on the economy is substantial. Southern is the UK’s largest rail franchise, covering routes from Sussex, Surrey, Hampshire and Kent into London. GTR, led by CEO Charles Horton, also operates the Thameslink, Great Northern and Gatwick Express rail companies, and its parent company, Govia, runs London Midland and South Eastern train companies. So the trouble has implications for other parts of the country, too, and other rail companies are doubtless keeping watch. |
| Caught up in the chaos are numerous entrepreneurs who are having to cancel meetings and endure staff lateness and trading losses. Among them is Guy Pattison, founder of Long Run Works communications agency. Pattison lives near Lewes, East Sussex, and has an office in Brighton. He says he is now forced to book accommodation prior to meetings, because he “can’t rely on Southern trains to make the early morning connections out of London”. He says he has lost business and can’t attend networking meetings because of the state of the trains. | Caught up in the chaos are numerous entrepreneurs who are having to cancel meetings and endure staff lateness and trading losses. Among them is Guy Pattison, founder of Long Run Works communications agency. Pattison lives near Lewes, East Sussex, and has an office in Brighton. He says he is now forced to book accommodation prior to meetings, because he “can’t rely on Southern trains to make the early morning connections out of London”. He says he has lost business and can’t attend networking meetings because of the state of the trains. |
| “We’ve missed dozens of face to face meetings in London,” says Pattison. “We’ve also been ducking out of evening networking events early, or skipping them altogether, to make sure we can get home. Being out and about is the best form of marketing for an early stage business and it’s that hidden cost that hurts the most.” | “We’ve missed dozens of face to face meetings in London,” says Pattison. “We’ve also been ducking out of evening networking events early, or skipping them altogether, to make sure we can get home. Being out and about is the best form of marketing for an early stage business and it’s that hidden cost that hurts the most.” |
| The visitor economies of the south coast have also taken a pounding because of railway failures. The Brighton Argus recently ran a front page with pictures of empty beaches on sunny days alongside stories of hoteliers who have seen a drop in bookings. Meanwhile, Brighton and Hove Football club said it lost around £300,000 over two matches because of RMT strike action. | The visitor economies of the south coast have also taken a pounding because of railway failures. The Brighton Argus recently ran a front page with pictures of empty beaches on sunny days alongside stories of hoteliers who have seen a drop in bookings. Meanwhile, Brighton and Hove Football club said it lost around £300,000 over two matches because of RMT strike action. |
| Max Leviston, general manager of the seafront aquarium Sea Life Brighton, says since the disruption began last April, visitor numbers have fallen 5%, during a period he’d expect a rise. He points to figures from Visit Brighton showing that about 40% of visitors to Brighton come by train, and says the city’s economy relies on rail. “As a tourist attraction in Brighton, we are experiencing first-hand how travel uncertainties and rail strikes are punishing the city’s economy. Visitor numbers are down, not just at our aquarium, but for the city and, dare I say, countywide,” says Leviston. | Max Leviston, general manager of the seafront aquarium Sea Life Brighton, says since the disruption began last April, visitor numbers have fallen 5%, during a period he’d expect a rise. He points to figures from Visit Brighton showing that about 40% of visitors to Brighton come by train, and says the city’s economy relies on rail. “As a tourist attraction in Brighton, we are experiencing first-hand how travel uncertainties and rail strikes are punishing the city’s economy. Visitor numbers are down, not just at our aquarium, but for the city and, dare I say, countywide,” says Leviston. |
| GTR, however, told the Guardian that the disruption is due to the RMT’s refusal to “talk to us sensibly” about the company’s plans to alter the role of the guard and modernise the network. This plan means renaming guards as “on-board supervisors” and removing from them the job of operating the doors. GTR says its new rolling stock enables the operation of driver-only operated trains. It has guaranteed there will be no job losses and says the strikes over safety concerns are “unnecessary and pointless” as driver-only operated trains are safe and used on many other routes. | GTR, however, told the Guardian that the disruption is due to the RMT’s refusal to “talk to us sensibly” about the company’s plans to alter the role of the guard and modernise the network. This plan means renaming guards as “on-board supervisors” and removing from them the job of operating the doors. GTR says its new rolling stock enables the operation of driver-only operated trains. It has guaranteed there will be no job losses and says the strikes over safety concerns are “unnecessary and pointless” as driver-only operated trains are safe and used on many other routes. |
| Strikes aside, GTR still needs to explain why it cannot operate a full timetable, or even a reduced one, without substantial cancellations and delays. The company blames “unprecedentedly high levels of conductor sickness and reluctance among train crew to work overtime”. The RMT, however, told the Guardian it was untrue and an “insult” to say staff were taking additional sick days. It blames the disruption on “intransigent and hopeless management [who are] useless and unfit to run a whelk stall, never mind our biggest rail franchise”. It says its industrial action is against plans to close ticket offices and reduce staff, pay and passenger safety. | Strikes aside, GTR still needs to explain why it cannot operate a full timetable, or even a reduced one, without substantial cancellations and delays. The company blames “unprecedentedly high levels of conductor sickness and reluctance among train crew to work overtime”. The RMT, however, told the Guardian it was untrue and an “insult” to say staff were taking additional sick days. It blames the disruption on “intransigent and hopeless management [who are] useless and unfit to run a whelk stall, never mind our biggest rail franchise”. It says its industrial action is against plans to close ticket offices and reduce staff, pay and passenger safety. |
| The RMT is regarded by many as one of the UK’s most militant and bullish unions, and it makes a convenient target for GTR. But entrepreneurs such as Amanda Davey, founder of Tilia Publishing UK and a regular user of the Southern network, are not buying GTR’s “blame the unions” line. She says her business has missed critical trade shows due to Southern’s poor service and is calling on GTR to be stripped of its franchise. | The RMT is regarded by many as one of the UK’s most militant and bullish unions, and it makes a convenient target for GTR. But entrepreneurs such as Amanda Davey, founder of Tilia Publishing UK and a regular user of the Southern network, are not buying GTR’s “blame the unions” line. She says her business has missed critical trade shows due to Southern’s poor service and is calling on GTR to be stripped of its franchise. |
| “I am concerned that too much attention is being paid to what is being said by the company [GTR] that holds the monopoly in this region,” she says. “All Govia appear to have done is tell the same-old story and blamed the unions again. Nobody is perfect in this, but believing one side tells all the truth is only going to continue a risible farce for longer. A new management team needs to be airlifted in.” | “I am concerned that too much attention is being paid to what is being said by the company [GTR] that holds the monopoly in this region,” she says. “All Govia appear to have done is tell the same-old story and blamed the unions again. Nobody is perfect in this, but believing one side tells all the truth is only going to continue a risible farce for longer. A new management team needs to be airlifted in.” |
| Railway experts say that this is more simply a dispute over who gets to open and shut the doors. Dr John Disney, a senior lecturer at Nottingham Trent University and consultant to the Department for Transport, questions whether GTR will be able to manage the problems. He references another Govia franchise, London Midland, which has suffered substantial delays and cancellations, saying there are “parallels” with Southern. Disney says Govia had managed the Southern network efficiently until 2014, when the franchise was increased in size, encompassing Thameslink, Great Northern and Gatwick Express, under the management of GTR. He says the problems with this new “mega franchise” – union issues, infrastructure weaknesses and GTR’s “human resource issues” – may be too much for GTR. “It really seems to be beyond them sorting out,” says Disney. “They are in a mess, let’s not under-estimate it.” | |
| So far the Department for Transport has ruled out stripping GTR of the franchise, or being involved directly in talks with the RMT. Meantime, it is businesses, commuters and anyone else who uses the service who is suffering. | So far the Department for Transport has ruled out stripping GTR of the franchise, or being involved directly in talks with the RMT. Meantime, it is businesses, commuters and anyone else who uses the service who is suffering. |
| Dr Clifford Conway of Brighton Business School, who lectures in small business and enterprise, says: “There are roughly 10,500 registered businesses and a large number of freelancers in Brighton and these types of businesses rely on having flexible travel available. For small businesses, such as those in the creative industries space with clients in London, there’s a big issue of confidence. They may be concerned that clients will desert them for competitors in Soho or other parts of the country.” | Dr Clifford Conway of Brighton Business School, who lectures in small business and enterprise, says: “There are roughly 10,500 registered businesses and a large number of freelancers in Brighton and these types of businesses rely on having flexible travel available. For small businesses, such as those in the creative industries space with clients in London, there’s a big issue of confidence. They may be concerned that clients will desert them for competitors in Soho or other parts of the country.” |
| Conway says the tourism industry of Brighton, worth an estimated £780m and bringing in more than 8.5 million visitors every year, relies heavily on the summer period. The disruption on the rail network will almost certainly have hit this. “The i360 has just opened in Brighton, so this should be boosting the tourism industry in the city. But the impact of strikes and disputes is likely to have been quite significant.” | Conway says the tourism industry of Brighton, worth an estimated £780m and bringing in more than 8.5 million visitors every year, relies heavily on the summer period. The disruption on the rail network will almost certainly have hit this. “The i360 has just opened in Brighton, so this should be boosting the tourism industry in the city. But the impact of strikes and disputes is likely to have been quite significant.” |
| Sue Terpilowski, London policy chair at the Federation of Small Businesses said: “While our members will be working flexibly where possible to minimise the disruption to their businesses during the Southern strike, they are losing patience. There will be lasting implications on already tight margins for London’s small businesses at a time when the cost of doing business in the capital is rising. | Sue Terpilowski, London policy chair at the Federation of Small Businesses said: “While our members will be working flexibly where possible to minimise the disruption to their businesses during the Southern strike, they are losing patience. There will be lasting implications on already tight margins for London’s small businesses at a time when the cost of doing business in the capital is rising. |
| “For those businesses in the hospitality or retail sectors the impact will be felt more keenly. Many restaurants, hotels and shops will experience cancelled bookings and lost sales that will not be recovered.” | “For those businesses in the hospitality or retail sectors the impact will be felt more keenly. Many restaurants, hotels and shops will experience cancelled bookings and lost sales that will not be recovered.” |
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