HUNDREDS of workers in the York area fear their jobs may be lost when Network Rail decides which companies it will cut from contracts.

Six contractors are currently carrying out renewals work on the railways nationwide, but Network Rail is set to reduce this number to four.

If York-based firm Jarvis PLC is not awarded a contract, the company's 200 or so employees could face being jobless.

Bill Rawcliffe, the York and district branch chairman of union RMT, said the cut would inevitably result in job losses in the York area.

He said: "This is beyond the final nail in the coffin for York's railway industry - it now exists in name only. We're mopping up the shadows now - trying to protect the handful of jobs we've got left. This is devastating for people who live in York."

"The workforce is anxious, because they don't know how long they're going to have a job for. It's scandalous, and a disgrace - sending people to work with that worry over their heads. All we're asking is: Are we going to have a job, or not?"

Mr Rawcliffe said he was concerned about the safety implications of such workforce anxiety.

He said even if jobs were lost in other areas, this could still affect people from York who travelled to work in those areas.

"We'll all be thrown on to the open market, scrambling for other people's jobs. The possible consequences are a reduction in wages, and a worsening of terms and conditions. It's a back door way of reducing people's wages," he said.

He said if Network Rail reassured workers that protective legislation would be applied to them, they would have nothing to worry about. "Network Rail hasn't said what's going to happen to staff at the companies that are going to lose out," he said.

A Jarvis Rail spokesperson said: "This national initiative was announced by Network Rail last December. We are proud of our performance for Network Rail, and we are working hard to ensure that we have the best chance of being one of the four main contractors to continue in track renewals. Jarvis's experienced team, innovative approach, and high output plant will be key elements in realising this opportunity."


Network Rail's assessment

A Network Rail spokesperson said: "The announcement that we intend to reduce the number of track renewals contractors from six to four was made last December.

"This is in order to deliver cost savings of around £150 million over three years - a saving which will be re-invested directly back into the rail network.

"We are in the middle of a six month assessment of all six current contractors and no decision will be made until the end of that process.

The staff employed by our contractors are highly professional, and all safety measures and legislation remain in place.

Staff working for contractors are not our employees, and it would be inappropriate for us to comment on their terms and conditions.

Peter Henderson, director of projects and engineering at Network Rail, said in December last year: "We are confident that retaining a reduced number of track renewals contractors is the best way forward for renewals activity. As well as the core renewals work awarded under the existing contracts, the opportunities to win elements of competitively awarded work remain, which will drive further efficiencies by offering growth in turnover for the highest performers."