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Wednesday, 10 April, 2002, 12:36 GMT 13:36 UK
Arriva chief's 'ludicrous' bonus
Arriva train
Arriva's services have been hit by strikes
A pay bonus of �201,000 given to the chief executive of Arriva trains has been described as "ludicrous", by a rail union.

Mr Davies was paid the bonus, as well as other benefits totalling �23,627, on top of his �316,000 salary.

The Rail Maritime and Transport worker's union (RMT), which is involved in a dispute with Arriva Trains Northern over the pay of its conductors, has criticised the payment.

The company says it aims to ensure its directors are fairly rewarded.

RMT north-east regional organiser Stan Herschel said: "We believe we have a fair and just argument and for Mr Davies to be awarded a �200,000 bonus is absolutely ludicrous.


The objective... is to ensure that they [executive directors] are highly motivated and fairly rewarded

Arriva statement

"Everybody has got to be paid competitively, and if you look at the situation regarding my conductors, they are paid less than conductors on other train operating services."

Arriva has offered a 3% pay rise to RMT conductors plus 5% based on productivity.

But the RMT has said drivers have been given an 18% pay rise plus a Christmas bonus of �400 and pension improvements.

Strikes

In a statement, Arriva said: "The objective of Arriva's remuneration policy for its executive directors is to ensure that they are highly-motivated and fairly rewarded."

The company also said that the last pay rise for executive directors was made in January 2001, but following the terrorist attacks on 11 September it was decided to freeze their salaries.

A series of strikes has affected train services since January.

The next 48-hour stoppage is expected on 5 May.

Mr Herschel said: "They were on about keeping the pay structure intact... what kind of pay structure have we got when individuals can get this kind of payment?" .

In March, it was confirmed that Arriva had been fined �2m for poor performance in 2001.

See also:

10 Apr 02 | Wales
Fresh rail strike threat
03 Apr 02 | England
Rail strike peace talks fail
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