Rail fare rises funding
fat cat pensions

Rail passengers paying fare rises of up to 13%
are funding gold-plated pensions for private rail
bosses, the white collar rail union TSSA has said.
The pensions bonanza — which sees First Group’s
Sir Moir Lockhead retire on £325,000 a year this
March — comes as passengers face three years of
increases of RPI inflation plus 3% from 2012 on top
of the present increases.
“The rewards at the private rail companies expose
the myth that these huge fare increases are directly
linked to future rail investment,” said TSSA general
secretary Gerry Doherty.
“Rail privatisation is a gravy train. The private
companies take all the profits and the passengers
take all the pain.”
As well as Lockhead, Southeastern boss Keith Ludeman
retires this summer on a pension of £200,000
a year. Meanwhile at Arriva, David Martin, who
banked nearly £5 million when the firm was taken
over by Deutsche Bahn, will pick up £366,000 a year
when he retires.
“These huge rewards are being paid on the back
of passengers who are paying the highest fares in
Europe,” added Doherty.
Ray O’Toole “retired” from National Express’
board last May, but continues as an employee of
the group. He opted out of the group’s final salary
scheme in April 2006 by which time he was entitled
to a pension of £38,200 a year on retirement
in 2015. However since then the group has been
paying a pension supplement to him equivalent
to 44% of basic salary and over £800,000 has been
paid to him to sort out a rather handsome pension
in retirement.
Stagecoach is involved in a number of franchises,
including South West Trains. Chief executive Brian
Souter, according to the group’s 2010 annual report,
has accrued a pension worth at least £348,000 a year
for when he retires in four years time.