Rail union presumes Labor loss in NSW

THE powerful NSW Rail Tram and Bus Union has effectively conceded Labor will lose the state election in March

THE powerful NSW Rail Tram and Bus Union has effectively conceded Labor will lose the state election in March.

It has told its members in an update on pay negotiations that it has secured "vital protections" for them when the Coalition "takes over" next year.

In a bulletin to the state's 17,000 rail workers dated August 25, the RTBU says the threat of industrial action has forced RailCorp and the NSW government to offer a four-year wages deal, with a 4 per cent pay rise in the first year and 3.5 per cent a year in the following three years.

The agreement, yet to be approved by union members, includes guarantees of no forced redundancies, which will stymie any plans the Coalition might have to save money by reducing the railway workforce. "The proposed agreement meets our key objectives -- it gives us vital protections that we will need when Barry O'Farrell and the Liberal government take over next year, and provides a pay increase that is better than inflation," the bulletin says.

"The negotiating team has been working hard to get a better offer on the table. It hasn't been easy, but the threat of industrial action has undoubtedly been a major factor in getting RailCorp and the state government to give some ground."

The proposed agreement runs for four years, which the union says protects "our jobs and entitlements should we be faced with a new state government following next year's state election, with guarantees for no forced redundancies". The pay rise will be backdated to April 1, and the agreement installs a process for managing future workplace changes "that will give workers a say and provides for an independent umpire to resolve disputes".

NSW rail workers threatened a 24-hour strike just days before the federal election in a bid to strongarm the state government into a 5 per cent pay increase and an assurance that the agreement would not result in staff cutbacks.

NSW Opposition Leader Barry O'Farrell said at the time that the public was "being held hostage because of this government's inability to . . . settle wage issues between its workers and itself".

The pre-election industrial action did not eventuate, and it is expected the latest employment deal offered by RailCorp will be approved when it is put before union members next week.

Public transport reform and increased spending in the sector is expected to be one of the key platforms of the NSW Coalition's election campaign next March.

But while Mr O'Farrell has said he will pursue the outsourced management of Sydney Ferries if elected, he has not made a similar commitment to revamp the larger rail system.

Earlier this year, opposition transport spokeswoman Gladys Berejiklian said: "We need to bring those services up to scratch before we go down that path."

NSW Transport Minister John Robertson did not return calls last night.

Mr O'Farrell and Ms Berejiklian also did not answer inquiries by The Weekend Australian.