UNDER-fire trains firm Arriva could have funded four years of pay increases for conductors with the money it has lost during strike action, union chiefs said today.

Officials at the Rail, Maritime and Transport Union (RMT) said Arriva losses during industrial action showed "the futility of the ongoing dispute".

Stan Herschel, RMT York regional organiser, spoke out as a new two-day conductor strike disrupted train services in North Yorkshire today.

Back in January, the Evening Press reported that Arriva Trains Northern (ATN) was losing £240,000 a day in ticket sales.

Mr Herschel estimated, that with the strike about to enter its 11th day on Saturday, Arriva ticket sale losses could now be at least £2.5 million.

He added this figure dwarfs the £700,000 a year it would have cost Arriva to pay conductors what the union first asked for in talks.

Conductors are striking in protest at pay and conditions bonuses given to drivers but not to them.

Mr Herschel said: "Arriva made a big profit last year. I think that's been wiped out (by strike action).

"Our demands would have cost £700,000 a year. This (the losses) is a classic example of the Ray Price school of economics.

"The company is not even talking to us now. Arriva management has got a number of responsibilities to the travelling public, staff and shareholders. All three are miserable.

"If Ray Price (managing director of ATN) is on performance-related pay, I hope he starts playing the lottery!"

But Julian Evans, director of corporate communications at Arriva, said the union's claims were simplistic.

"This is a very short-term view," he said. "We have to take a long- term view in terms of investment available. If we gave into an unreasonable demand from our conductors then a number of groups of employees would expect to be treated in exactly the same way.

"It would impact on other parts of the rail industry. While we recognise the inconvenience to our customers... to give in to an unrealistic demand would impact on the franchise going forward."

Mr Evans added that while ATN was losing £240,000 per strike day, that cost had to be considered alongside other savings resulting from the strike action.

Updated: 16:29 Friday, May 03, 2002