UK: DB Cargo UK has announced plans to cut jobs, saying its German parent company DB Cargo ‘has informed its European entities that it can no longer sustain the level of losses being incurred across the group’.
DB Cargo UK has proposed the loss of 95 traincrew roles. Some would be lost through natural attrition, so it is envisaged that there would be around 70-75 redundancies, about 10% of its current traincrew resource.
In a message to staff on November 1, DB Cargo UK CEO Andrea Rossi said the business expects to report ‘yet another significant loss this year’. The number of trains operated each week is down by 25% as a result of a significant softening of some core markets, exiting unprofitable contracts and a loss of business to competitors. Meanwhile costs have increased ‘exponentially’ over the past 18 months, because of external factors including the impact of Russia’s war against Ukraine on the price of energy, parts and materials.
‘While we had been working towards an agreed five-year plan to improve’, with efforts to improve operations, financial efficiency and profitability, Rossi said that ’unfortunately our circumstances have now changed and dictate that we take more immediate action’.
The parent company has set ‘challenging’ new targets which mean the current timescales to improve financial performance will no longer deliver what is required ’to secure a long-term, profitable and strong future for DB Cargo UK’.
Formal consultation is underway with ASLEF, and other unions have been informed that the operator is currently reviewing other grades and will enter into consultation with them when and if appropriate.
ASLEF told Rail Business UK that ‘we are working with DB Cargo to find a way through this — for drivers and for the company’.
