Railroad bosses warn union barons they will push through reforms if they reject 8% pay rise

Railroad bosses warn union barons they will push through reforms if they reject 8% pay rise

Railroad bosses warn union barons they will push through reforms if they continue to reject 8% pay rise offer

  • Network Rail is at risk of escalating its feud with the militant RMT union over wages
  • Railroad bosses can legally continue to modernize working methods in the coming weeks and months without approval from the RMT union
  • But it could backfire by making the RMT even more angry and triggering more strikes

Railroad bosses yesterday warned union barons that they will implement reforms in work practices if they continue to reject an 8 percent pay rise.

Network Rail risked escalating the feud with the militant RMT union over wage and job security by issuing a so-called “section 188” warning.

It means they can legally continue to modernize work practices in the coming weeks without union approval.

The move by the agency, which manages the signaling and maintenance of the tracks, will be seen as an attempt to get the RMT to accept its wage offer.

But it could backfire by making the RMT even more angry and provoking more strikes.

Network Rail wants to use technology more to detect obstacles on the line, schedule staff more flexibly and multi-skills so that less is needed for certain jobs.

It says accepting these changes could generate millions of pounds in efficiency savings to give RMT employees an 8 percent pay increase this year and next.

But the union rejected the offer and instead organized four national strikes, the last of which is Wednesday. It has declared two more national strikes on August 18 and 20.

RMT Secretary General Mike Lynch arrives at RMT headquarters

RMT Secretary General Mike Lynch arrives at RMT headquarters

RMT supporters protest outside Network Rail's offices as a nationwide strike called for by the RMT Union was held on July 27, 2022 in Glasgow, Scotland.

RMT supporters protest outside Network Rail’s offices as a nationwide strike called for by the RMT Union was held on July 27, 2022 in Glasgow, Scotland.

A senior source acknowledged that Network Rail’s move could provoke a “hostile response” from the union, but said: “We cannot be held to ransom for modernizing our work practices.”

They added: “It’s not something we do with any sense of appetite or taste, but faced with that perceiving crisis in the industry it’s something we absolutely have to do.”

Contrary to the approach of the RMT, it emerged yesterday that the railway union TSSA made the same wage offer to its Network Rail members in a referendum instead of going on strike.

A spokesperson for the Ministry of Transport said: ‘This is a positive step forward. Network Rail has put a good offer on the table and we sincerely hope TSSA members will agree.

“Other unions need to sit up and take notice and realize that the best way to bring about reform is to work together with industry and unions.

“We urge other unions to stop playing politics and follow the TSSA’s lead by giving their members the opportunity to voice their opinion on Network Rail’s proposals.”

Mr Haines said: ‘The way people live and work has changed since the pandemic. On the railways, this means significantly fewer commuters and significantly less income.

“This year we will see a deficit of around £2 billion compared to 2019.

A senior source acknowledged that Network Rail's move could provoke a 'hostile reaction' from the union (supporters pictured), but said: 'We cannot be held to ransom for modernizing our work practices'

A senior source acknowledged that Network Rail’s move could provoke a ‘hostile reaction’ from the union (supporters pictured), but said: ‘We cannot be held to ransom for modernizing our work practices’

“It would be wrong to fund this deficit through rate hikes or taxes, when we know that some of our working methods are being fundamentally breached.

“That’s why we need to make progress in modernizing the way we do maintenance work and realize the savings needed for the future of our track.

“We have not given up on finding a negotiated way forward. We’ve made a good wage offer and our door remains open, but we can’t keep circling the same ground day after day, week after week and get no further.

“These reforms are too important, especially since we started these talks 18 months ago.

“It is vital that we continue our modernization plans to make our railway financially sustainable going forward.”