The unions praised last night a “new benchmark” for wage awards, as Liverpool rail workers received a 7.1% increase.
Merseyrail reached an agreement with the Transport Salaried Staffs’ Association (TSSA), whose leader said it had paved the way for other unions to negotiate similar agreements.
Merseyrail is one of the few government-run franchises without money. Ultimately, it is controlled by the local labor authority and the labor mayor.
Railroad officials described the 7.1 percent deal as the only one, and an industry source said any possibility of it being repeated on the network was “fanciful.” The deal is, however, the fourth such generous increase for railway workers after a 9% increase for Docklands Light Railway workers and an 8% increase for London Underground and Eurostar.
Talks between the RMT union, Network Rail and train operators collapsed again last night, ensuring more rail chaos today. RMT bosses have so far rejected a “unconditional” 3% pay rise for Network Rail staff with a 1% increase based on productivity gains.
In other developments:
• Inflation hit a 40-year high of 9.1% in May, driven by rising food and gasoline prices.
• The largest teachers’ union will advise its members to go on strike if they do not receive an increase in inflation plus salary.
• Treasury has told ministers that any increase in public sector staff salaries must come from existing budgets.
• Sir Keir Starmer has opened the door to support wage increases below public sector inflation, threatening a new confrontation with unions.
• The Secretary of Labor and Pensions said wealthy seniors should return a 10% increase in state pension if they do not need it.
• Strike lawyers must be referred to regulators for possible misconduct charges if they refuse to appear in court, the highest judge in England and Wales has ordered.
TSSA Secretary General Manuel Cortes welcomed the Merseyside deal as a “reasonable offer” that helped keep pace with rising cost of living. He said it would “prove to the whole country that ministers are in a course of unnecessary and meaningless intransigence.”
He said: “What this clearly shows is that our union, and the sister unions, are by no means an obstacle to finding the necessary solutions to avoid a summer of discontent on the railways. Rather, it is the government that has the intention to dig the heels in. Grant Shapps [the transport secretary] and co it would be prudent to wake up and start talking seriously with our union as we vote for industrial action on our railways up and down the country.
The railway chiefs immediately distanced themselves from Merseyrail’s “incomparable” offer because the railway operator still “has the keys to its finances”.
Mick Lynch, secretary general of the RMT, said Grant Shapps had thwarted attempts to prevent a second strike.
STEFAN ROUSSEAU / PA
A senior industry source, familiar with the negotiations, said unions should “leave the Liverpool deal at the door” and said the idea of getting these “inflationary wage increases from train operators backed by the taxpayer is fanciful, even by union standards. ” .
Boris Johnson has said that Britain will face a “wage-price spiral” in the style of the 1970s if it yields to the demands of the unions and accepts large wage increases.
Today, ministers will announce plans to repeal laws banning companies from using temporary workers to replace striking staff. The law would take effect in a few weeks.
More than 40,000 railroad workers will picket across the country today, reducing the railroad to one-fifth of regular operations. As on Tuesday, the first day of the strike, the network will only operate from 7.30 am to 6.30 pm.
Shapps accused the RMT of lying last night, as he rejected claims by Mick Lynch, the union’s general secretary, that he had put an end to the possibility of a deal.
Announcing the 24-hour strike today, with a third scheduled for Saturday, Lynch said: “Grant Shapps has broken these negotiations by not allowing Network Rail to withdraw its letter threatening the redundancy of 2,900 of our members. Until the government triggers Network Rail and the train companies, a negotiated agreement will not be possible. “
Shapps said: “I had absolutely nothing to do with the issuance of a Network Rail letter, the employer, to the RMT, or any request to withdraw it.”
Network Rail sent a letter to unions on Monday when talks broke down for the last time, informing them of a formal consultation on modernizing maintenance and layoffs on July 1st. natural rotation.
Shapps said: “I understand that the letter does not mention 2,900 redundancies, but I do know that it confirmed that Network Rail would introduce desperately needed reforms for the industry after the union opted for a strike instead of new talks.”
Merseyrail employs about 1,200 people, with the TSSA representing staff, from guards to driver managers. The company has made a similar salary offer to RMT members, who are holding a referendum on its outcome. Neither union is on strike at Merseyrail.
Many people have missed work meetings, had to change their plans, or have been stranded by the interruption of yesterday’s trip.
Jack Veitch, 27, who works in human resources, said he missed important work meetings after his train from Bristol Temple Meads to London Paddington ended up in Reading to replace a service run at the Glastonbury festival. He was expected to arrive in the capital at 9:10 p.m.
“Everything was going well,” he said. “But when we got to Reading, they said the train was reorienting to Glastonbury stop. My frustration is that most of the people on the train were going to work.” He waited 40 minutes to catch another crowded train and arrived at his destination an hour and a half late. “The whole week has been a nightmare for us, the customers,” he said.
Wendy Beckham and Adam Williams had to reduce their rest in London
Wendy Beckham, 50, said she took a week off in London to celebrate the 50th birthday of her partner, Adam Williams. The train disruption meant they had to cut back on their holiday for a short day to avoid being stranded, while paying around £ 500 in additional costs. Their train to Norwich has been canceled, so they have had to get tickets for a bus home tonight.
Beckham, an NHS worker, said: “Book these things in advance. You know the train strike is going to happen. Either you lose all this and our free time, which is valuable, or you take a risk and leave.” He said they also missed a family-organized birthday meal because there was no way to get there. “You usually walk down the street in London and take a taxi, but they were all booked.”
• Less than a tenth of office workers arrived at their desks on Tuesday as rail strikes paralyzed the transport network (writes Andrew Ellson). The average office occupancy in London was only 9%, compared to 42% last week, according to data from Freespace, a technology company that has 120,000 sensors in corporate offices.
Average employment in the UK was 22%, just over half the normal 40% rate. Before the pandemic it was around 60 percent.
But while the figures illustrate the scale of the disruption, a separate analysis by the Center for Economic and Business Research (CEBR) suggests that the economic impact of the strike has diminished due to the capacity now they have companies to allow employees to work from home.
Karl Thompson, a think tank economist, said: “The estimated £ 91 million cost of these strikes is almost half of the £ 173 million that would have been expected to cost below home work levels. of 2019, and almost two-thirds below £ A cost of £ 250 million you would have expected in the total absence of homework.
Grant Shapps accused the RMT union of lying about the railway strike negotiations, as it confirmed a second national exit tomorrow.
At least 40,000 RMT members will picket tomorrow for real-time layoffs and pay cuts. The railway will run at 20 per cent of its capacity and only from 7.30am to 6.30pm. Many of the last intercity trains will leave in the middle of the afternoon.
Announcing the 24-hour action, General Secretary Mick Lynch said: “Grant Shapps has broken off these negotiations by not allowing Network Rail to withdraw its letter threatening the redundancy of 2,900 of our members. government will not trigger Network Rail and train companies, it will not be possible to reach a negotiated agreement. “
His comments infuriated ministers and the railway industry. Shapps, the transport secretary, said: “This is a total lie from the RMT and its secretary general. I had absolutely nothing to do with the issuance of a letter from Network Rail, the employer. to the RMT, nor with any request to withdraw it “.
Grant Shapps says RMT was wasting time making “false claims on media”
JOHN SIBLEY / REUTERS
A senior industry source said they were “confident” the tide would change the RMT, adding: “The public will soon realize that these big unions are subjecting them to a bailout.”
Network Rail delivered a letter to union leaders on Monday when talks broke down for the last time, informing them of a formal consultation on modernizing maintenance and layoffs on July 1st. The card, seen for The times, does not mention figures, but Network Rail has said it intends to cut 1,800 jobs through voluntary layoffs and natural staff turnover.
Shapps added: “I understand that the letter does not mention 2,900 redundancies, but I know it confirmed that Network Rail would introduce desperately needed reforms for the industry after the union opted for a strike instead of new talks.
“I want to urge Mick Lynch and his members to stop wasting time …