Unions attack Stagecoach over profit rise

Published on Wednesday 24 June 2009 21:50

UNION leaders yesterday attacked transport giant Stagecoach after the company announced a 13 per cent rise in annual profits to £196.4 million, saying it was a "scandal" that so much money was being made as the firm was cutting jobs.

Stagecoach, which carries two million passengers a day and has a fleet of more than 7,000 bus and coaches, said growing demand for bus travel amid the recession – and as commuters switched from cars – had helped the division to operating profits of 125.6 million, an improvement of 14 per cent on a year earlier.

Stagecoach's rail arm was more sensitive to economic conditions after profits fell to 55.7 million from 59.1 million a year ago.

The South West Trains and East Midland Trains operator has responded to slower revenues growth with a "cost-reduction programme" and efforts to attract new customers.

Chief executive Brian Souter said there was "no doubt" the transport sector faced a challenging year ahead, but he added that Stagecoach was well placed to withstand the economic pressures.

The Rail Maritime and Transport union said that there should be a moratorium on dividend payments across the transport sector while thousands of workers faced the threat of redundancy.

General secretary Bob Crow complained: "It's a scandal that Stagecoach, with the connivance of the Westminster government, are jacking up their dividend payouts while up to 1,000 of their rail staff are being threatened with being thrown on the scrapheap."

He added: "Jobs are being axed, ticket office opening hours are being cut and all in the name of generating the maximum profit and dividends for the company's shareholders."