The Impact of Brexit Deal on Eurostar Paper Example

Introduction

The United Kingdom began the process of exiting the Brexit deal, following a vote campaigned by Prime Minister May, on 23 June 2016. The negotiation process to facilitate the exit of the United Kingdom from the Brexit deal is expected to start on 29th March 24, 2019. Certainly, the exit is of significance in the following research paper as some of the set policies affecting transportation are embedded in the Brexit deal. Eurostar is one of the most significant train transportation services in Europe for an extended period. Therefore, the United Kingdom and the European Union are prompted to come up with a proper deal to secure the Eurostar rail link, as it is an integral part of the development of the UK's economy.

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The study is based on some of the circumstances suffered by the rail transportation system; for instance, the Eurostar rail link provided the United Kingdom exists the Brexit without a proper deal devised. The study follows the potential effects suffered by the Eurostar employees and among other challenges leading to the loss of national revenue by the United Kingdom, following her exit from Brexit. However, as a recommendation, the study will identify and evaluate the potential ways Eurostar continuity will be ensured to protect the staff members and other potential costs as a result of losses.

Objective

The general objective of the study is to identify and evaluate the effect of the British exit from the European Union on her transportation industry. Moreover, a more focused approach will be to examine the impact of Brexit on Eurostar's staff and among other costs.

Literature Review

The History of Eurostar

The Eurostar is a train operating company served by the Eurotunnel which is mandated to manage the railway links. Eurotunnel is responsible for building the connecting tunnel between France and England serving train channels and among other transportation services, for instance, the vehicle shuttle. The construction of the tunnels began in 1987, done on from the two sides, which eventually culminated in the somewhat middle position under water. Hence, the project is considered a collaborative effort of various governments, which is supported by a syndicate license lasting through to the year 2051, initially. After that, the permit was extended to a further 35 years before the ownership is returned to the government.

Whereas, Eurostar is a transportation company mandated to operate train services along the Eurotunnel, as well as between England and France. The operations by Eurostar became effective from 1994, since then its popularity grew to transport about 1000 passengers daily across the England-France route (Eurostar International Limited, 2016). Therefore, Eurostar is considered a significant customer of the Eurotunnel as it pays substantial monetary benefits to the company operating the channel, so they are offered the rights to operate on the railway. The use of the railway link by Eurostar prompted the development of a contract between the companies, referred to as Railway usage Contract (RUC) up until 2025. That deal proves to be a major revenue stream for the Eurotunnel.

The Brexit Deal

The British exit deal was undertaken through a referendum on June 23rd, 2016, whereby the citizens voted in favour of the country to be dismembered from the European Union. The situation involving the exit of British from the European Union has a huge implication in the various matter about the United Kingdom's business operation. Moreover, the deal had a profound effect on the British currency, making it go down in record time in history (Expatica, 2019). The votes in favour of exit from the European Union was based on the European immigration policies and debt. The financial statements from the Eurotunnel Group determine that the debt structure is alarming, as the company has enormous debts dating back in the 19th Century. The loans are usually on a fixed-rate basis amounting to 1056 million Euros, whereas the floating-rate amounts to 1409 million Euros. These cumulative loans are a burden to the company which has to pay it off in the next 34 years.

The exit of Britain has a cumulative impact on the British currency with the Euro becoming stronger, while the pound weakling as the situation prevails. According to a study by Expatica, the European countries are exchanging more money from Euro to pound, and that will hurt the British economy shortly. However, when the Great Britain Pound continues to go down, the people from all over European countries will be prompted to source for the various goods they need from England. Therefore, the cumulative impact of Brexit deal is not only on international trade and currency fluctuations but also the need to move from Europe towards the United Kingdom, hence the transportation industry is also affected. Moreover, the weakling Great Britain Pound will prompt tourists to actively move from their respective European countries towards the United Kingdom to enjoy their vacations. In spite the Eurostar being able to increase its revenue due to the increased traffic between Europe and England, it will suffer losses by 28 percent which will have an impact on the staff members as well as other additional costs.

Eurostar Staff Members Uncertainty

The workforce in Eurostar is comprised of people from diverse nationalities; hence their future is vital for Irish and British trade union, the Transport Salaried Staff's Association (TSSA). Moreover, the trade union represents not only Irish-Briton employees but also the employees over the vast European countries. The trade union has been advocating for the United Kingdom to remain a member of the vast European Union, for the benefit of the diverse staff members as their future is at stake, given the dismemberment of the United Kingdom. The execute members of the TSSA have raised legitimate concerns about the potential economic loss, provided the Brexit deal is implemented. Moreover, the severity of the economic loss with being dependent on the resolutions made leading to the European Union exit by the Briton. Majority of the staff members working for Eurostar depend on their job as the primary source of revenue. Hence the fall out prove detrimental and damaging.

Therefore, the staff members think that determinate negations should be successful and based on proper exit without implications on the Eurostar's continuity. That will enable the staff members' dependent on their respective jobs, to be secured. However, currently, they are facing potential job losses as the answers to their future is still minimal. Therefore, the staff members are still waiting on their future with the advice of TSSA encouraging them to stay hopeful. That is through championing for the United Kingdom stay in the European Union for the benefit of the diverse staff members.

Research Strategy

Research on the impact of Brexit deal on Eurostar's staff members employed the use of a descriptive research method. According to the Center for Innovation in Research and Teaching, descriptive research is a study seeking to describe a phenomenon, subject or behaviour (CIRT, 2019). Therefore, the research method is categorized as descriptive as it aims to obtain quantifiable data, the collective impact of potential joblessness of staff members and among other costs, which is essential in the statistical analysis of the subject under study.

The quantitative method of gathering data is based on quantifying relationships existing amongst the measured variables, whereby statistics and numerical data are significantly used. By using quantitative methods, there is the establishment of a study topic which is specific; hence the data collected is usually reliable. Whereas, qualitative approaches gather verbal data and information but not numerical and statistical. There is the excellent use of holistic analysis in the interpretation of study findings. Therefore the quantitative method is more deductive and particular, and is dependent on the development of hypothesis and proving it by the use of statistical data obtained. The study integrated qualitative perspective in data gathering based on some obvious advantages of the method. For instance, the technique is open to additional ideas during the study process. With the method, the environment under which the study takes place is not manipulated, and there is the use of more controls.

Primary and Secondary Research

The descriptive research method gathers information on preexisting conditions about the Brexit deal, with much interest in the description rather than interpretation. The goal of the descriptive research is to authenticate the hypothesis put forward, but not the presentation of a scenario to evaluate the problem. Therefore, the descriptive research method takes a quick approach with regards to the financial factor present in studies. That kind of research method is of importance as it facilitates the collection of primary data from the study sample. The research into the topic used the descriptive research method in the identification and evaluation of the impact of Brexit deal on Eurostar staff members. The method was preferred as it facilitated the collection of primary data and information from the participants

Sources of Data

The study makes use of Eurostar's human resource staff members, who are the respondents in the research. The human resource staff members are obtained from the various regional departments since the company has its jurisdiction in several countries. The descriptive method of research is applicable since there can be a determination of answers by the respondents which are similar and the diverse ones. The research into the impact of Brexit deal on Eurostar's staff members obtained two data types. The types of data gathered are categorized into primary and secondary based on their respective sources. For instance, the primary data types were obtained from the survey process when the response by the participants was recorded. Whereas, the secondary data types were gathered from peer-reviewed literature, which is published and relevant to the study topic.

Population and Sampling

Fifty respondents were requested to undertake the study as participants. There was a clear criterion used in the selection of the participants, such that, accurate data is collected. Therefore, the criteria were that participants must be human resource staff members of the respective Eurostar's regional departments. The selection of participants was made from five regional departments, with the selection of 10 human resource department staff members from the either region. That amounted to 50 participants selected to undertake the study. Moreover, the selection of the 50 participants is as a result of random sampling. Whereby, each employee in the human resource department is offered an equal opportunity to be part of the entire study. To realize that method of sampling, there should be the definition of the population in question. Such that, all the human resources staff members for the respective departments are listed. Every staff member listed was assigned a particular number for identification purposes before undertaking the lottery selection process. After that, a lottery is conducted was conducted, whereby, the random lucky pick technique was employed.

Data Collection Methods

The study was able to combine the perspective of qualitative and quantitative, with the help of the interviews and questionnaires which facilitated data gathering. The gathering of first-hand data is crucial in the formulation of sound and rational recommendations and conclusions without prejudice and bias. Moreover, preference for the methods is based on its flexibility, as demonstrated by the use of both quantitative and qualitative data. T...