New pay proposal could see an end to two years of industrial action, protect passengers from further national strikes and improve the reliability of services
Following a series of positive talks led by the new UK government, ASLEF yesterday (14 August 2024) agreed to recommend a new pay proposal to its members.
The offer made to ASLEF is a 5% pay rise for 2022/23, 4.75% for 23/24, and 4.5% for 24/25. The offer will now be put to ASLEF members in a referendum.
This marks a significant step towards resetting industrial relations and resolving the long-running rail dispute, which has seen services disrupted for over 2 years now. As the pay proposal includes an offer for the year ahead, it also means there is no national rail dispute on the horizon.
The Secretary of State for Transport, Louise Haigh, says the breakthrough shows how this government is “putting passengers first”.
If agreed by ASLEF members, the pay proposal could see an end to 2 years of industrial action, protect passengers from further national strikes and improve the reliability of services, which train passengers have been missing for far too long.
Poor industrial relations have caused disruption and delay for working people, prevented families from visiting loved ones and stopped the public from attending events, damaging the hospitality sector.
New industry estimates revealed today show that railway revenue foregone because of strikes since June 2022 has totalled around £850 million – a debilitating amount for the industry and a huge burden that falls directly on the taxpayer. Accounting for additional impacts of strikes, including those due to people being unable to work, or due to potential reductions in spending on hospitality and retail, the total impact likely exceeds £1 billion.
This government changed the tone and got unions back around the table to resolve rail disputes. In recent weeks, the Transport Secretary has instructed senior officials to conduct intensive talks with unions in order to resolve disputes in the interests of the travelling public, which has led to this significant breakthrough.
Transport Secretary, Louise Haigh, said: “When I took this job, I said I wanted to move fast and fix things – starting by bringing an end to rail strikes. Finally today the end is in sight.
“If accepted, this offer would finally bring an end to this long-running dispute and allow us to move forward by driving up performance for passengers with the biggest overhaul to our railways in a generation.”
Transport disruption has a huge impact on the wider economy, with sectors like hospitality and tourism among the worst affected.
In the financial year of 2022 to 2023 alone, strike action was estimated to cost over £500 million of economic output due to people not being able to work.
If ASLEF members vote yes, it will end the national two-year pay dispute during which drivers have taken 18 days of strike action as well as refusing to work non-contractual overtime.
The dispute – the longest in the recent history of Britain’s railways – was because the Tory government, and the privatised train companies, refused to give train drivers, who have not had an increase in salary for five years, since their last pay deals expired in 2019, the pay rise they deserve because, during that time, the cost of living has increased significantly.
Mick Whelan, ASLEF’s general secretary, who negotiated the deal with Simon Weller, assistant general secretary, and Dave Calfe, executive committee president, emerged from talks at the DfT to say: “‘We are pleased that after being treated with utter contempt for the last two years by the privatised train companies, and the previous government that was pulling their strings, we finally have a new government – a Labour government – that listens and wants to make the railway work for staff, for passengers, and for the taxpayer.
‘The offer is a good offer – a fair offer – and it is what we have always asked for, a clean offer, without a land grab for our terms & conditions that the companies, and previous government, tried to take in April last year.
‘We will put it to members with a recommendation for them to accept.’
The no-strings three-phase offer is for 5% for 2022-2023; 4.75% for 2023 to 2024; and 4.5% for 2024 to 2025. Backdated and pensionable.
Mick Whelan added: ‘We have achieved more in the last four weeks of a Labour government than we managed under a Tory government that set out to destroy us – first by refusing to meet us, then by insisting the companies could only offer us 2%, then by offering us 4% but with a land grab for all the T&Cs we have spent 144 years negotiating with productivity and sweat.
‘We have gone from people behaving dishonestly and deceitfully and trying to rip up all our t&cs to a group of people who seem to understand the interests of rail workers, the travelling public and the taxpayer.’