RAIL union RMT held a mass meeting in Manchester today as part of its national campaign to end outsourcing on Britain’s railways.

The meeting heard from RMT general secretary Eddie Dempsey, regional organiser Steve Shaw, Salford Labour MP Rebecca Long Bailey and North West TUC secretary Jay McKenna.

In a recent report, the union warned that despite government plans to bring rail franchises in-house and create the new publicly owned body Great British Railways, a “hidden layer” of contractors continues to profit from the exploitation of thousands of workers.

The report warned that such companies make their profits by keeping workers on low-paid, inferior or casual contracts, leaving them struggling to get by.

RMT argues that all rail jobs, from cleaning to catering, engineering to station services, should be brought back in-house to reverse decades of outsourcing that have driven down pay, eroded conditions and undermined safety.

The union is also pressing the Labour government to honour its pledge to deliver the biggest wave of insourcing in a generation.

Mr Dempsey said: “Outsourcing on our railways is a racket.

“Private firms are cashing in while cleaners, security staff and track workers, among others, are left struggling, often on low pay, insecure contracts and unsafe conditions.

“We have overworked cleaners, for example, working while sick, as companies like Churchill hand millions to shareholders.

“It’s totally indefensible and a waste of taxpayers’ money.”

Mr Dempsey said the meeting was to ensure that Labour deliver on its promise of the “biggest wave of insourcing in a generation,” which he said will “benefit our members and the travelling public as well.”

Separately in a video message, he addressed Churchill Cleaners, which runs cleaning services for Govia Thameslink Railway.

A worker there was reinstated after being sacked for speaking up about conditions, only to be dismissed again soon after.

Mr Dempsey said: “This is not an isolated case. It’s part of a clear pattern of trade union victimisation, where raising a grievance or talking to your union is met with disciplinary action, reassignment or dismissal.

“It’s crucial that when Churchill’s contract expires, all of our members who are [on] outsourcing contract[s] are brought back in-house.

“Our union is very clear: cleaners need to be brought back in-house.

“That was a promise made by this Labour government, who said at the last general election that we're going to have the biggest wave of insourcing in a generation, and we want to hold them to account.”

He added that the union is “stepping up its campaigning, building membership strength and preparing ourselves for any collective action that we might have to take.”

“We’ll continue to confront Churchill like we would any employee who treats our members in this disgraceful fashion,” he said.

RMT warns that outsourcing is inefficient, drains passenger revenue and wastes taxpayers’ money.

Companies cut costs to win bids at the expense of service quality, only to rebuild them later to protect profit margins.

The union estimates that around £235 million flows out of Network Rail each year in subcontractors’ profits, with a further £130m going to outsourcing firms — about £400m in total.

RMT research also shows that despite the cost-of-living crisis and rising labour costs, contractors have preserved their margins by using contracts that pass extra expenses straight back to the government.

The Department for Transport and Churchill Cleaners were contacted for comment.