POVERTY PAY ON RAIL CONTRACTS

That this House is concerned that a significant number of workers on the rail network continue to be poorly paid; notes that catering contractors such as Rail Gourmet fulfil contracts where they pay less than the Living Wage Foundation rate of £9 per hour; is further concerned that contractors on the rail network consistently argue that they are not in a position adequately to recognise the contribution of their employees in pay and conditions negotiations due to restrictions arising from the contractual arrangements between contractors and client organisations such as train operating companies; acknowledges that the subcontracting culture means frequent significant disparities in rates of pay among staff sharing the same employer, such as workers across the various contracts Rail Gourmet holds with train operating companies; congratulates RMT on its recent agreement with DHL on the Virgin West Coast contract, which ensures that Living Wage Foundation rates are the minimum for its staff; and calls on contractors to pay a decent wage and on the Government to end outsourcing and in the interim to work to ensure that all rail contracts include legally binding commitments that compel subcontractors to pay Living Wage Foundation rates.