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BackOn 26.2.2014, the so-called “Fourth Railway Package” was adopted by a large majority of Conservative and Liberal MEPs in the European Parliament, which de facto means a further push for the liberalisation of rail transport in Europe. In view of the large number of amendments put forward in the EU Parliament, the European Commission regards the reforms as not far-reaching enough, whilst from the point of view of the trade unions many highly problematic developments could be avoided.
The Fourth Railway Package: Worrying changes
The AK generally considers the liberalisation of European rails, which was adopted in the European Parliament on 26.2.2014, an extremely worrying development, because this has opened the floodgates for further privatisation tendencies. Even though the option of awarding public contracts directly, without putting them to tender remains in principle; in future, however, these can only be justified on the basis of extremely strict conditions.
This means in practice the introduction of so-called “cherry picking”, whereby private providers choose particularly profitable routes, which will lead to a systematic weakening and even possible closures of less lucrative regional lines.
Due to these new requirements, public providers will in future be forced to bid for more tenders, which in practice might lead to rising prices and wage dumping. It will always be employees and consumers who have to foot the bill, even though the proposal of the European Commission had promised to make the rail sector in Europe more attractive.
Partial successes for employees
In spite of these general undesirable developments, due to a large number of amendments, the Fourth Railway Package also got rid of some fangs. It is for example particularly positive that in case of future operator changes, the regulation concerning the mandatory staff takeover will apply.
Apart from that, it has been possible to avert the restrictions on the right to strike, which was aimed at by the European Commission. In his legislative proposal, Siim Kallas (Commissioner for Transport) also supported the so-called “unbundling”, in other words the break-up of railway companies, which, for example, maintain the network and operate rail transport themselves. However, the finally adopted Fourth Railway Package has been able to avert this foray by the Commission. After all it would have had a far-reaching impact on employees and would have resulted in additional costs, caused by the loss of synergy effects.
Conclusion: getting off lightly
Due to the large number of amendments in respect of the original proposal of the EU Commission, it has been possible to defuse the Fourth Railway Package with regard to many important issues, even though a new step towards the liberalisation of rail transport in Europe has been taken.
It must now be observed, from the point of view of employees and consumers, what impact the new freedom of competition in the rail sector will have on quality, costs and sustainability of the services provided. It has to be feared that liberalisation will not succeed in making rail transport more attractive, as had been promised by the European Commission.
Further information on the Fourth Railway Package:
AK EUROPA Position Paper “The Fourth Railway Package: Completing the Single European Railway Area to Foster European Competitiveness and Growth“
Fact Sheet “Facts on amending Regulation 1370/2007 EU“ by AK EUROPA and vida
Study (available just in German) “Economic impact of passenger rail liberalisation in Austria“, commissioned by AK Vienna, Trade Union for Transport, Commerce and Service Workers, vida, Austrian Association of Cities and Towns and Austrian Association for Public and Social Economy VÖWG
The AK generally considers the liberalisation of European rails, which was adopted in the European Parliament on 26.2.2014, an extremely worrying development, because this has opened the floodgates for further privatisation tendencies. Even though the option of awarding public contracts directly, without putting them to tender remains in principle; in future, however, these can only be justified on the basis of extremely strict conditions.
This means in practice the introduction of so-called “cherry picking”, whereby private providers choose particularly profitable routes, which will lead to a systematic weakening and even possible closures of less lucrative regional lines.
Due to these new requirements, public providers will in future be forced to bid for more tenders, which in practice might lead to rising prices and wage dumping. It will always be employees and consumers who have to foot the bill, even though the proposal of the European Commission had promised to make the rail sector in Europe more attractive.
Partial successes for employees
In spite of these general undesirable developments, due to a large number of amendments, the Fourth Railway Package also got rid of some fangs. It is for example particularly positive that in case of future operator changes, the regulation concerning the mandatory staff takeover will apply.
Apart from that, it has been possible to avert the restrictions on the right to strike, which was aimed at by the European Commission. In his legislative proposal, Siim Kallas (Commissioner for Transport) also supported the so-called “unbundling”, in other words the break-up of railway companies, which, for example, maintain the network and operate rail transport themselves. However, the finally adopted Fourth Railway Package has been able to avert this foray by the Commission. After all it would have had a far-reaching impact on employees and would have resulted in additional costs, caused by the loss of synergy effects.
Conclusion: getting off lightly
Due to the large number of amendments in respect of the original proposal of the EU Commission, it has been possible to defuse the Fourth Railway Package with regard to many important issues, even though a new step towards the liberalisation of rail transport in Europe has been taken.
It must now be observed, from the point of view of employees and consumers, what impact the new freedom of competition in the rail sector will have on quality, costs and sustainability of the services provided. It has to be feared that liberalisation will not succeed in making rail transport more attractive, as had been promised by the European Commission.
Further information on the Fourth Railway Package:
AK EUROPA Position Paper “The Fourth Railway Package: Completing the Single European Railway Area to Foster European Competitiveness and Growth“
Fact Sheet “Facts on amending Regulation 1370/2007 EU“ by AK EUROPA and vida
Study (available just in German) “Economic impact of passenger rail liberalisation in Austria“, commissioned by AK Vienna, Trade Union for Transport, Commerce and Service Workers, vida, Austrian Association of Cities and Towns and Austrian Association for Public and Social Economy VÖWG