Rail chiefs' bonuses on hold until end of inquiry into Cumbrian crash

Four rail bosses bowed to fierce criticism yesterday and agreed to defer part of their annual bonus until after the inquiry into the Cumbria rail crash.

There was an outcry when Network Rail announced a £1billion profit and said the four executive directors would be receiving bonus packages of up to £200,000.

At the same time, the company revealed that some 120 staff who had been working in the Grayrigg area before February's derailment would have their much smaller bonuses deferred until the outcome of the investigation was known.

With the unions threatening industrial action, Network Rail announced within hours that the four bosses were also deferring the annual part of their bonuses.

Chief executive John Armitt was in line for a total bonus package of more than £200,000. This includes an annual bonus of £88,740, which is now deferred.

Deputy chief executive Iain Coucher got a total package of more than £179,000, including a now deferred £79,220.

The other two – finance director Ron Henderson and engineering director Peter Henderson – were awarded total packages worth £133,937, including now-deferred bonuses of £59,057.

All Network Rail staff are due an annual bonus of at least £400.

Gerry Doherty, of the Transport Salaried Staffs Association, said: "The decision to defer the bonus payments for other employees whilst pocketing their own was double standards in anyone's book and it should not have taken us to point this out."

RMT general secretary Bob Crow said: "It seems our strike threat has shamed Network Rail bosses into suspending part of their own massive bonus payments."

An 84-year-old woman died in the derailment of a London to Glasgow train. Eight other passengers were seriously hurt.

Network Rail accepted the initial inquiry findings, which blamed the crash on a faulty set of points.

Chairman Ian McAllister said yesterday: "Every single employee at Network Rail has paid a personal price for the Grayrigg derailment.

"The tragedy and the significant costs that resulted affected the company's performance, lowering the overall bonus payments for all Network Rail employees."