Liberalisation Index

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    Liberalisation of the railway sector: will it shift more traffic to rail?

    Franz Greil

    Arbeiterkammer Wien

    International Trade Union House (ITUH)

    Room B, 1st floor

    Boulevard Roi Albert II, 5, Brussels


    About Arbeiterkammer (AK)

    represents 3.3 million employees

    and consumers in Austria

    self-governing body regulated by public


    main tasks:

    think-thank for Trade Unions

    participation in and control of


    services to members,d.d24&psig=AFQjCNFkKZqi_XDZpbKymCsQ1hfkINkH2w&ust=1433770008945114


    Policy Issues


    Fourth Railway Package

    Liberalisation and Competition in the rail


    The Potential for Modal Shift



    Objectives of Shift2Rail:

    removal of technical obstacles in terms of

    interoperability in the European Railway


    enhance the attractiveness and

    competitiveness of the European railway

    system to ensure a modal shift towards rail

    support for the European rail industry to

    retain leadership on the global market



    AK criticized the role of the S2R-joint

    undertaking on:

    defining technical standards without

    legitimation and public involvement

    circumventing the European Railway


    no representation of Trade Unions at JTI-


    F&E expenditure ignores the needs of the

    railway staff


    Fourth Railway Package

    EU-Commission proposals tabled in 2013 on

    Technical pillar

    Role of European Railway Agency

    Interoperability of the Rail System in EU

    Railway Safety Certificate

    Market pillar

    opening the market for domestic

    passenger rail transport

    Rail Governace

    railway undertakings account


    Technical Pillar

    Deal between EP and Council (June 2015)

    ERA responsible for authorisations in cross-border


    Choice between ERA and national safety authorities

    (NSA) for national transport

    NSA continue to authorise the placing in service of

    track-side control-command and signalling, including


    European Vehicle Register

    Safety culture and occurrence reporting

    No provisions on regular maintenance checks

    Compliance of train drivers with rules on working,

    driving and rest periods will be monitored


    Market Pillar

    Deal between EP and Council in April 2016

    opening up of domestic rail passenger markets from


    Competitive bidding for public rail contracts will

    become the norm for awarding public service

    contracts from 2023, except in certain cases

    impartiality of railway infrastructure managers to

    guarantee non-discriminatory access to tracks for

    new railway companies


    Rail Governance

    Vertically integrated undertaking

    (= railway provider and infrastructure

    manager) confirmed

    Provisions on management board

    Economic equilibrium for public transport

    and open access for railway passenger



    Awarding of Public Service Contracts

    Competitive Tendering will be the rule

    Possibility, but no obligation for transfer of

    staff in the event of a change in the


    Directly awarded public service contracts

    have been saved


    Liberalization and Competition

    in the Rail sector

    Motivation of the EU-Commission

    No choice for customers

    No efficient use of public money

    No sufficient quality in railway services

    To stop the decline of the rail sector

    Be aware of the legal competences of the

    Commission and the European Union!


    Liberalisation IndexSource: IBM-Deutschland/Humboldt-University Berlin, 2011

    The Rail Liberalisation Index provides information on the relative

    market opening of the railways in the European Union and other

    countries in 2011.

    The index includes information on freight transport and

    passenger transport (public service, commercial service)


    Liberalisation Index

    Among the group of advanced market opening (800-1.000 points) are:

    Sweden (872) , United Kingdom (865) , Germany (842) , (Denmark 825) , The

    Netherlands (817) , Austria (806)

    In the group market opening on schedule (600-799 points) are:

    Belgium (753) , Switzerland (714) , Czech Republic (738) , Slovakia (738) , Portugal

    (737) , Poland (737) , Italy (737) , Estonia (729) , Norway (729) , Romania (726) ,

    Bulgaria (718) , Finland (672) , Slovenia (672) , Hungary (658) , France (612)

    In the group of delayed market opening (300-599 points) are:

    Latvia (592) , Greece (592) , Lithuania (587) , Luxembourg (585) , Spain (583) ,

    Ireland (467)


    Customer satisfaction

    There is no correlation between the degree of liberalization (LIB-Index)

    and customer satisfaction (Eurobarometer-Survey, Commission)!


    Customer satisfaction

    Countries with a very low degree of liberalisation have

    partly higher satisfaction scores than strongly liberalized


    (FR vs GER, LU vs ITA, ES vs BG)

    There are also highly liberalized countries with a high

    costumer satisfaction (AT, SE)

    There are also countries with a low degree of liberalisation

    and a high costumer satisfaction (CH, IRL)

    A compelling connection between

    liberalization and customer satisfaction does

    not exist!


    Competitive tendering

    The cost for personal makes the difference!

    Requirements for the rolling stock are identical for every


    Infrastructure costs are identical for every enterprise

    Costs for energy are identical for every enterprise

    Collective agreements do not provide

    sufficient protection!


    Impact on Employees

    Reduction of salary jumps

    No collective agreements (eg in outsourcing)

    Wage reduction (up to 25% for new workers)

    Lower wages in case of outsourcing

    New entrants have lower wages

    Reduction of bonuses

    Trends of wage dumping

    Immediate reduction of the basic salary are rare

    New working time regime: flexibility, compression and extension

    Growing intensification of work and stress

    Individualization of employment: income insecurity

    Introduction of precarious and atypical forms

    Reduction of apprenticeships and further education


    Competitive Tendering and Award Criteria


    Compulsory Tendering leads to

    OligopoliesNummer of Bidders (Germany)


    Market Share

    There is no correlation between the

    degree of liberalization and the performance of the railways

    Modal Split (Passenger) and index of liberalization


    Passenger Transport and Market

    Share of Rail (Source: Eurostat, 2013)


    Market Shares

    There is no correlation between the degree of liberalization and the performance

    of the railways:

    France: 23th place at Liberalisation Index + 3% in the modal split

    Germany: 3rd place at Liberalisation Index + 1% in the modal split

    Czech Rep. 8th place at Liberalisation Index decline in passengers

    Hungary 19th place at Liberalisation Index highest share

    The Modal Split is the distribution of

    transport volumes on different means of

    transport (Road, Rail, Waterways,



    Freight and Modal Shift


    Freight Transport in EU Modal Split


    Railways and Market Share in Europa(Source: Eurostat, 2013)

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