Train drivers were offered a 14 per cent pay rise over three years on Wednesday night in an effort to bring an end to their crippling strikes.
Louise Haigh, the Transport Secretary, announced the above inflation increase which will see the average driver’s salary rise from £60,000 to just shy of £70,000.
The union Aslef hailed the “no-strings” deal which saw ministers ditch Tory demands for an end to generous working practices, including a four-day week.
It is the latest climb-down to the unions since Sir Keir Starmer took power just under six weeks ago. Last month, junior doctors were offered a 22 per cent increase over two years to end NHS strikes.
Rachel Reeves, the Chancellor, has also signed off on an above-inflation salary increase of 5.5 per cent for millions of public sector staff at a cost of nearly £10 billion.
She justified the move by arguing fresh strikes would cost the economy more in the long run.
But it has sparked fears that she will have to put up taxes in her first Budget on October 30 to cover the spiralling cost of the government wage bill.
Under the latest bumper deal, train drivers have been handed two years’ worth of backdated pay rises which match the 9.7pc rate of inflation.
They have then been offered a 4.5pc increase for this year up to April 2025, which is more than double the projected rate of inflation. It is a total of 14.25 per cent over three years.
‘An end to this long-running dispute’
A deal would end two years of disruptive strikes which have seen train drivers walk out on 18 separate days, bringing the rail system to a standstill.
But it will raise further fears over the power the unions hold over Labour, which plans to bring the railways back into public ownership.
On Wednesday, Angela Rayner promised a “new era of partnership” with union bosses as she vowed to press ahead with reform to workers’ rights.
But business leaders have warned her plans risk stifling economic growth.
Ms 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.
“The Conservatives were happy to see the taxpayer pay the price as strikes dragged on and on, and passengers suffered. This Labour Government is doing the right thing and putting passengers first.
“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.”
The Government subsidises the rail industry to the tune of £12 billion a year.
Aslef, the train drivers’ union, urged its 19,000 train driver members to accept the offer which will allow them to keep their current working conditions.
Mark Harper, the former Tory transport secretary, had been demanding modernising reforms including contracts that cover a seven-day week.
Under the current system, train drivers work a four-day week totalling 35 hours.
‘Labour has caved to the unions’
Most are not contractually required to work Saturdays and Sundays, meaning that they can charge overtime pay for volunteering to work at the weekends.
Train drivers also enjoy a series of bizarre rights collectively known as “Spanish practices” which the previous government wanted to end.
They include allowing staff to start their lunch break again if a boss starts talking to them and refusing to let workers use new technology like video calls.
Earlier this year, union bosses said that drivers should get extra pay for being required to use tablets such as iPads whilst at work.
Mick Whelan, the Aslef secretary-general, said Labour had “listened” to his union whereas the Tories had treated it with “utter contempt”.
He said: “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 and 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.”
Helen Whately, the shadow transport secretary, said: “A ‘no strings’ deal means this will be paid for by passengers and taxpayers.
“We have to make our railways more efficient - but instead Labour has just caved to the unions.
“Ditching working practice reforms leaves a hole in the finances that can only be filled by higher fares or higher taxes.”
