RAIL unions welcomed South Western Railway’s (SWR) return to public ownership today as a “major step forward,” but warned that continued outsourcing of essential front-line services risks undermining the benefits of renationalisation.

The franchise will transfer to the operator of last resort this Sunday as part of the government’s transition towards the creation of Great British Railways.

But the RMT condemned the continued outsourcing of key roles — including cleaning, security and gateline services — to private profiteers such as OCS, STM Group, Carlisle Support Services and Adecco.

The union said the companies collectively made gross profits of 9 per cent from public rail contracts last year while employing workers on poverty wages, without sick pay or decent pensions.

RMT general secretary Eddie Dempsey said: “Public ownership of SWR is a major step forward and is a clear rejection of the failed privatisation model.

“But the job is incomplete when our contracted-out members remain outsourced and not reaping the benefits of nationalisation.

“This lingering injustice for our members working for profit-hungry private contractors must end and RMT will campaign tooth and nail to make insourcing a reality."

Mr Dempsey urged the Labour government to act on its promise of a “wave of insourcing,” and to bring all rail workers back in-house “without delay.”

The union is urging ministers to follow the lead of publicly owned rail operators in Scotland and Wales, where insourcing has already improved working conditions and service delivery.

Mr Dempsey added: “We will hold the Labour government to its promises to carry out the biggest wave of insourcing in a generation.”

Train drivers’ union Aslef general secretary Mick Whelan said: ”Everyone in the rail industry knows that it’s privatisation – which even that arch-privateer Margaret Thatcher described as a privatisation too far – didn’t, and doesn’t, work.”