Losers in air-rail train order shed 1,400 jobs; that’s life.
By UNCLLS payday loans
Tuesday, 05 Jul 2011 10:41
Last month, the company lost out to German group Siemens as the preferred bidder to build 1,200 carriages for the route between Bedford and Brighton amongst other locations.
I have noted media outrage at the ‘loss’ of these jobs and will take a look at some of the facts with a more considered view.
Firstly, the number of UK jobs promised by Siemens is 2,000 including 600 jobs at a new factory in Tyneside. Overall, this outweighs the number of job losses in Derby. This is supplemented with the 500 jobs promised by Hitachi in the North East for the assembly of the Super Express Trains that they are preferred bidder for and the Government has recently given the go ahead for.
Secondly, I note that the Coalition Government seems to be taking the brunt of the criticism for making Siemens the preferred bidder for this contract. The bids were submitted in the summer of 2009 under a Labour Government tender process. What are people asking the Coalition Government to do - fiddle the evaluation process or start the procurement process again? Both are unpalatable - it has been far too long since the last train order in the UK; new carriages are much needed to relieve the problems that we face on a daily basis- unacceptable overcrowding.
Bombardier’s reputation in the UK is chequered. Yes, their Stansted Express trains are good but their last involvement in Thameslink was the late delivery of Class 377’s to a furious First Capital Connect. Bombardier lamely blamed their supply chain.
The UK signed up for the common market in the 1970s, globalisation of markets is a fact and UK firms have every opportunity to export expertise. For sure, some countries have protectionist policies but ultimately they will become less successful if they buy local products that are sub-standard and/or more expensive.
The bottom line is that Canadian firm Bombardier lost a fair procurement process by putting in the second best bid. The answer is to up its game and put more competitive bids in.
A return to protectionist policies practiced in the last century in the capitalist world or planned economies of the communist world are the last thing the world economy needs at the moment.
I invite you to have your say:
I have noted media outrage at the ‘loss’ of these jobs and will take a look at some of the facts with a more considered view.
Firstly, the number of UK jobs promised by Siemens is 2,000 including 600 jobs at a new factory in Tyneside. Overall, this outweighs the number of job losses in Derby. This is supplemented with the 500 jobs promised by Hitachi in the North East for the assembly of the Super Express Trains that they are preferred bidder for and the Government has recently given the go ahead for.
Secondly, I note that the Coalition Government seems to be taking the brunt of the criticism for making Siemens the preferred bidder for this contract. The bids were submitted in the summer of 2009 under a Labour Government tender process. What are people asking the Coalition Government to do - fiddle the evaluation process or start the procurement process again? Both are unpalatable - it has been far too long since the last train order in the UK; new carriages are much needed to relieve the problems that we face on a daily basis- unacceptable overcrowding.
Bombardier’s reputation in the UK is chequered. Yes, their Stansted Express trains are good but their last involvement in Thameslink was the late delivery of Class 377’s to a furious First Capital Connect. Bombardier lamely blamed their supply chain.
The UK signed up for the common market in the 1970s, globalisation of markets is a fact and UK firms have every opportunity to export expertise. For sure, some countries have protectionist policies but ultimately they will become less successful if they buy local products that are sub-standard and/or more expensive.
The bottom line is that Canadian firm Bombardier lost a fair procurement process by putting in the second best bid. The answer is to up its game and put more competitive bids in.
A return to protectionist policies practiced in the last century in the capitalist world or planned economies of the communist world are the last thing the world economy needs at the moment.
I invite you to have your say:
- Does Bombardier need to wake up and smell the coffee?
- Do the media need to calm down and get real?
- Do the workers of Derby need to look to the North East?
- Do you welcome the latest version of a Siemens train on air-rail journeys to Gatwick and Luton Airports in addition to Heathrow?
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