Boris Johnson warns public sector workers to accept real-terms pay cuts as rail strikes begin

A summer of discontent looms as Boris Johnson today tells public sector workers they must accept real-terms pay cuts to avoid a 1970s-style wage-price spiral.

With 40,000 workers heading out on the first day of a series of the biggest rail strikes in a generation, Mr Johnson and Chancellor Rishi Sunak are expected to tell a meeting of Cabinet today that public sector pay settlements must not be allowed to “scramble to match inflation”.

Mr Johnson said: “It is right that we reward our hard-working public sector workers with a pay rise, but this needs to be proportionate and balanced. Sustained higher levels of inflation would have a far bigger impact on people’s pay packets in the long run, destroying savings and extending the difficulties we’re facing for longer.”

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It follows Treasury Minister Simon Clarke saying yesterday that “inflation-busting pay increases” for employees in the public sector are not possible.

Mick Lynch, General Secretary of the Rail, Maritime and Transport (RMT) union giving a statement on national rail dispute at the RMT Trade Union headquarters in London. Trains will be disrupted due to industrial action as the RMT has announced industrial action on June 21, 23, and 25.Mick Lynch, General Secretary of the Rail, Maritime and Transport (RMT) union giving a statement on national rail dispute at the RMT Trade Union headquarters in London. Trains will be disrupted due to industrial action as the RMT has announced industrial action on June 21, 23, and 25.
Mick Lynch, General Secretary of the Rail, Maritime and Transport (RMT) union giving a statement on national rail dispute at the RMT Trade Union headquarters in London. Trains will be disrupted due to industrial action as the RMT has announced industrial action on June 21, 23, and 25.

“That is the surest way I can think of to bake in a repeat of the 1970s, which this Government is determined to prevent,” he told BBC Radio 4’s Today programme.

Downing Street has also urged private sector businesses to “take heed” of soaring inflation and consider pay restraint.

Thousands of members of the Rail, Maritime and Transport union at Network Rail and 13 train operators will walk out today, Thursday and Saturday in the biggest outbreak of industrial action after last-ditch talks broke down yesterday.

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Inflation hit nine per cent in April and the Bank of England has warned could reach 11 per cent by autumn.

Boris Johnson is to speak about the rail strikes and public sector pay talks in Cabinet todayBoris Johnson is to speak about the rail strikes and public sector pay talks in Cabinet today
Boris Johnson is to speak about the rail strikes and public sector pay talks in Cabinet today

Mick Lynch, RMT secretary general, said yesterday that his members had been offered a pay rise of just three per cent.

“The pay proposals are a two per cent down payment with the possibility of one per cent more, but we have to accept their full agenda of job cuts, changes to working practices, and of course we have to accept that we have not had a pay rise for our members in three years. I don’t think any trade union in the country could accept what is on the table today.”

He accused the Government of having “actively prevented a settlement to this dispute”. It has been reported that no negotiating mandate has been set for the rail companies by the Government.

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Mr Johnson is expected to tell Cabinet today: “The unions are harming the very people they claim to be helping. By going ahead with these rail strikes, they are driving away commuters who ultimately support the jobs of rail workers, whilst also impacting businesses and communities across the country.

“Too high demands on pay will also make it incredibly difficult to bring to an end the current challenges facing families around the world with rising costs of living. Now is the time to come to a sensible compromise for the good of the British people and the rail workforce.”

Further similar public sector pay disputes are likely to lie ahead in the coming months.

Teachers may be balloted for strike action if they are not offered a pay rise in line with inflation, while potential disputes involving doctors, nurses, civil servants and local government employees are also on the horizon.

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It was also confirmed yesterday that an ongoing bus strike which has prevented Arriva Yorkshire from operating any services in the region for two weeks will continue after talks broke down. Workers across Yorkshire first walked out on June 6. Unite the Union said they were protesting against the company’s “pitiful offer of a 4.1 per cent pay increase” during the cost of living crisis.

Meanwhile, barristers have voted for a nationwide strike over legal aid funding, with several days of court walkouts beginning from next week.

Blame game in Parliament over RMT strike action

Transport Secretary Grant Shapps said there can be “no deal” without accepting the need to modernise the railways, while accusing union leaders and the Opposition of seeming to focus on “widening the division, rather than bridging the gap”.

He has previously called for changes to voluntary Sunday working and the closure of ticket offices.

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“For modernisation and reform to work, we have to have unions who are prepared to modernise, otherwise there can be no deal,” he said.

Shadow Transport Secretary Louse Haigh accused Mr Shapps of a “grave dereliction of duty” after not directly participating in the talks. “The Secretary of State is washing his hands of any responsibility,” she said.

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