Railways Bill

John McDonnell Excerpts

2nd reading
Tuesday 9th December 2025 Commons Chamber

[Cat Eccles (Stourbridge) (Lab)]

As a long-time supporter of our railways and rail workers, I am proud to speak on a key Labour Government manifesto commitment. The Bill is about putting passengers, workers and the national interest back at the heart of our railways. For too long, a fragmented model has left the public with a patchwork quilt of competing interests, with tracks separated from trains, timetables misaligned and confusing incentives. Great British Railways offers a once-in-a-generation opportunity to stitch the network back together, with a single, publicly owned guiding mind with a 30-year horizon, stability in planning and clarity in purpose.

In 2023 I organised the country’s biggest campaign of its type to save the ticket office at Stourbridge Junction, alongside local rail users and Stourbridge’s favourite feline: George, the station cat. I heard at first hand how much our communities value an accessible, staffed railway. Passengers are not abstractions; they are neighbours, carers, shift workers and pensioners. They expect and deserve service, safety and support.

The Bill’s promise will be realised only by the people who deliver it: our railway workers. Our drivers, guards, signallers, engineers, station teams and cleaners are not a cost to be cut; they are an asset to be invested in.

[John McDonnell (Hayes and Harlington) (Lab)]

I declare an interest as chair of the National Union of Rail, Maritime and Transport Workers parliamentary group. There is currently no reference at all in the Bill to staffing. Who will be the staff’s employer? What will happen with their pensions? Will TUPE apply on transfer? Will their existing benefits apply? Will there be a mandate on the levels of staffing on stations and elsewhere? That is an agenda for constructive engagement with the Government. Does my hon. Friend agree that it is important that the Minister commits to that when he responds to the debate?

Railways Bill

John McDonnell Excerpts

Report stage
Wednesday 10th June 2026 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

With an immediate five-minute time limit, I call John McDonnell.

[John McDonnell (Hayes and Harlington) (Lab)]

Thank you, Madam Deputy Speaker—I thought that was coming.

I will speak to amendments 15 and 35, which stand in my name. Amendment 15 deals with the creation of an industry-wide travel scheme. One of the benefits of joining British Rail was that travel passes were extended to workers and their families. That was a real perk of the job, and I think it was protected under legislation on a cross-party basis for existing staff. However, that was only for existing staff, and as other companies took over, that benefit was lost. There was a range of different schemes.

All that amendment 15 would do is place a responsibility on GBR to bring together those schemes, so that there is one consistent scheme that will continue into the future for the benefit of the railways. We have written to the Secretary of State on this issue—in March, I think—and we are still seeking a meeting. I would welcome confirmation from the Minister that that will take place.

[Rachael Maskell (York Central) (Lab/Co-op)]

It is really important that that scheme includes people who worked at British Rail Engineering Ltd, who were then privatised and lost their passes as a result. Will my right hon. Friend ensure that BREL is also included in that meeting?

[John McDonnell]

I think we can place it on the agenda. I hope the Government will have taken this amendment on board by the time we get to the other House, because it is such a simple mechanism to bring together.

My second point is about amendment 35, which seeks to promote the insourcing of workers into GBR. The Government have announced the greatest wave of insourcing in a generation, and the amendment could create benefits by ensuring that the Government implement that promise. As people know, cleaning, catering, security guards and revenue inspectors have all been contracted out, but the biggest example is workers working on the infrastructure. I will run through the figures, which are staggering. Network Rail now directly employs 14,000 workers to maintain its rails and signals, but it also engages tens of thousands of subcontracted workers. Its renewals programme, for example, has been contracted out to a number of construction companies, which engage people on zero-hours contracts. It is insecure work with low wages and without adequate working conditions, and as Members across the House have said, there is often bogus self-employment as well.

[Cat Eccles (Stourbridge) (Lab)]

Will my right hon. Friend give way?

[John McDonnell]

Certainly, although I do not get an extra minute for this one.

[Cat Eccles]

I thank my right hon. Friend for giving way—he is worth the extra minute. He has spoken about the rail perks that staff benefited from; does he agree that that has also been lost by those staff who have been outsourced? At West Midlands railway, the company wanted to offer those staff some discounted travel, but the Department for Transport actually refused. Does my right hon. Friend agree that the changes he has described would be welcome?

[John McDonnell]

I agree wholeheartedly. We just need one comprehensive scheme under which everyone is treated equally—it is a benefit, one that helps to attract staff, but also to retain staff because of the commitment it demonstrates.

Just to understand the scale of outsourcing that has gone on, we believe that at the moment in excess of 100,000 infrastructure workers are engaged through outsourcing and subcontracting. People will be familiar with the impacts of that, including precarious contracts for the workers, but a report has recently been published by the National Union of Rail, Maritime and Transport Workers—an independent report produced by Nina Jorden and Joel Hoskins. I refer the House to my entry in the Register of Members’ Financial Interests, as I am the convener of the RMT parliamentary group. The report identifies the scale of costs that contracting out involves, and the critical issue that the contractors have very short-term horizons, so they fail to invest in skills. Time and again we have seen those companies undertake cost-cutting exercises, and the churn of workers leads to the loss of valuable skills and experience.

[Navendu Mishra (Stockport) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests. Black, Asian and minority ethnic workers represent 25% of the directly employed workforce of train operating companies, but that figure rises to just under 60% for outsourced cleaners and caterers. Does my right hon. Friend agree that outsourcing creates systemic racism?

[John McDonnell]

There is significance evidence of low pay and the way that people are discriminated against consistently throughout the outsourcing mechanism. Given all the research that has been done, that is unchallengeable.

I want to concentrate on the issue of loss of skills. Under British Rail, when someone joined the railway, they could have the vision that if they were committed and stuck with the organisation, they could secure additional training and rise up the ladder. All the way up, they would be gaining additional skills, but under outsourcing there has been a lack of investment in skills. The precarious work means that we are failing to invest in the next generation and, as a result, we may not have the skills to operate an effective system.

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[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

Let me first draw Members’ attention to my entry in the Register of Members’ Financial Interests, and to the financial support that I received from rail trade unions at the time of the general election. I am pleased to support the Bill and the wider programme of rail reform, but I want to explain why I have tabled a number of amendments and why I support some of those tabled by others.

Alongside the Passenger Rail Services (Public Ownership) Act 2024, this legislation represents the most significant reversal of rail privatisation in a generation. It creates Great British Railways as the new publicly owned body bringing track and train together under a single strategic direction. After decades of fragmentation, we have an opportunity to build a railway run in the public interest, with resources reinvested in services rather than being extracted from the industry.

But if the Bill is to succeed, it must improve conditions not only for passengers but for railway employees. The transition to GBR should be a just transition for railway workers, not simply an organisational restructuring exercise. I urge the Minister to consider a high-level industrial relations strategy alongside the high-level output specification.

I am concerned by reports of job losses at Network Rail ahead of GBR’s creation, and by evidence that some TUPE transfers have been accompanied by the erosion of collective bargaining arrangements. The move to GBR should strengthen industrial relations, not weaken them. In that context, the derecognition of the Transport Salaried Staffs Association for employees transferring from Network Rail to its wholly owned subsidiary Platform4 is deeply troubling. The removal of long-established recognition arrangements at the point of transfer sends the wrong signal about industrial relations under public ownership.

Ministers have been asked what preparations are being made to understand existing recognition agreements and to engage with trade unions during the transition, yet we have heard responses suggesting that recognition remains a matter for individual employers. That risks reproducing the fragmented industrial relations landscape created by privatisation, rather than overcoming it.

[John McDonnell]

I congratulate my hon. Friend on the work he did over the years to develop the policies that this legislation is largely based on. On the issue of trade union negotiations, we have advocated for sectoral collective bargaining in this sector, as in others, for quite a while. Why? Because it gives a voice to the workers themselves and brings about stability on issues such as employment and long-term investment. Does my hon. Friend agree that it is one of the building blocks for the new system we are creating?

[Andy McDonald]

I thank my right hon. Friend for his kind words, and I fully acknowledge his point. That is exactly how we are going to build a sustainable railway that will serve our communities and be responsive to reasonable requests from its workforce.

I have tabled new clause 26 and amendment 64, on the transfer of employees to GBR. The original vision of reform was for a railway with a single directing mind, but there is a strong case for having a single employer too. The legislation should make it clear that employees transferring from Network Rail, DfT Operator operators and former franchises will move into a coherent organisation, with full TUPE protections and clear employment rights. I also encourage the Government to move towards a formal framework for sectoral collective bargaining across the rail industry. Public ownership should create the conditions for partnership, workforce voice and stable industrial relations.

I have also tabled new clause 27, on pension schemes. It is remarkable that legislation transferring the railway back into public ownership contains weaker statutory pension protections than the legislation used to privatise it. The Railways Act 1993 included detailed provisions protecting pension rights, and workers joining GBR deserve the same certainty. Every railway employee should have a statutory right to participate in the railway pension scheme on protected terms.

I also support amendments to preserve schedule 17. We all remember the overwhelming public opposition to the proposals to close ticket offices, and schedule 17 provides an important mechanism for consultation and accountability when significant service changes are proposed. Those protections should not be casually swept aside.

I support the amendments tabled by my hon. Friend the Member for Leeds East (Richard Burgon), which would secure GBR in the public sector for the future. I also support amendment 35, which was tabled by my right hon. Friend the Member for Hayes and Harlington (John McDonnell), and the wider principle of insourcing. He is absolutely right to say that the Bill creates an opportunity for the greatest wave of insourcing in a generation. The railway should not rely on fragmented contracting models that create insecurity and limit progression. Bringing contracted workers directly into GBR would strengthen workforce planning, improve standards and help to fulfil Labour’s commitment to treat railway staff as an asset rather than a cost.

This Bill is a historic opportunity. Public ownership can deliver a better railway for passengers, but it must also deliver a better railway for the people who run it every day. By strengthening protections for employment, trade union recognition, pensions and insourcing, we can ensure that Great British Railways is built on the foundations of fairness as well as efficiency.

--- Later in debate ---

[Keir Mather]

The hon. Member is a tireless advocate for his part of the country, and we can continue our conversations. I merely reflected the point that having things about specific transport projects on the face of legislation is not the right way to address it, in the view of the Government, but I would be glad to meet him to take the conversation further.

[John McDonnell]

My hon. Friend is dealing with things at breakneck speed, and incredibly competently, but I think he has missed the confirmation in his briefing that he is willing to meet the RMT parliamentary group to discuss travel facilities for staff and insourcing.

[Keir Mather]

I thank my right hon. Friend for reminding me of that important matter, and I would be glad to facilitate a meeting either with me, if that is most appropriate, or with the Rail Minister to take that conversation forward.