Railways: London Midland Rail Franchise

Countess of Mar Excerpts

Wednesday 31st October 2012 Lords Chamber

[Earl Attlee]

My Lords, first, it is important to understand that the TOC has a target of continuously improving performance. Secondly, we need to understand that the penalties for breaching the contractual obligations are actually quite serious; so under the system of measuring performance it is possible for the TOC to have a few bad weeks and not be in breach of contract, but if it continues in that way, it will, under the terms of the franchise, eventually end up in breach of contract and be vulnerable to serious consequences.

[The Countess of Mar]

My Lords, does the noble Earl agree that it is not just the salary that matters with a job; job satisfaction involves all sorts of other factors such as being respected by your employer, being given decent working hours, being able to expect to work on certain days and not others, and always having something to anticipate that is good? This, I am afraid, is where London Midland has fallen down, and is why it is not retaining its drivers. Can anything be done to encourage it to be good to its workforce?

[Earl Attlee]

My Lords, the noble Countess is absolutely right. What actually encourages London Midland to sort this problem out are the provisions of the franchise that contain the necessary penalties.