Hundreds of train drivers who have left the profession will get a cash bung under the Government’s offer to end the two-year rail strikes, the Mail can reveal.
Ministers said on Wednesday that they had struck a deal with union barons which would see the average driver’s salary soar by 14 per cent to about £69,000.
Yesterday, however, Education Secretary Bridget Phillipson struggled to explain how the deal for drivers – who work a four-day week – would be funded.
While the offer came as a relief to passengers plagued by strikes, Labour was accused of surrendering to its union ‘paymasters’ because the deal comes with no strings attached.Â
The previous Tory administration insisted reforms, such as compulsory Sunday working, had to be part of any deal.
Ministers said on Wednesday that they had struck a deal with union barons which would see the average driver’s salary soar by 14 per cent to about £69,000. Pictured: Aslef general secretary Mick Whelan on a picket line at Euston station in London on September 1, 2023
While the offer came as a relief to passengers plagued by strikes, Labour was accused of surrendering to its union ‘paymasters’ because the deal comes with no strings attached. Pictured: Unite members on strike on December 1, 2023
RMT general secretary Mick Lynch joins striking RMT members on their picket line on September 2, 2023
Education Secretary Bridget Phillipson (pictured) struggled to explain how the deal for drivers – who work a four-day week – would be funded
But the offer is even more generous than first thought, as it also covers drivers who have left their jobs in the last two years.
This is because the 14 per cent salary hike covers three years, backdating to April 2022. Around 1,000 train drivers leave their jobs every year, according to industry figures.Â
This means as many as 2,000 who are now retired or have moved jobs could be in line for a taxpayer-funded windfall.
Former Tory leader Sir Iain Duncan Smith said: ‘Labour is throwing money at its union paymasters like confetti.
‘The unions have said “we’ve put up with 14 years of Tory government, now we want payback for all the times we supported you”.
‘And it’s not going to stop there. Once you give in to one or two on such a grand scale, everybody else feels like it’s Christmas. And taxes will have to rise to cover it all.’
Former transport secretary Grant Shapps criticised the fact that no reforms to working practices were demanded in return for the pay hike, adding: ‘If there are no real productivity improvements then this deal with your union paymasters will add to inflation, fail to modernise rail services and let down passengers.’
Empty tracks at Clapham Junction in London during an Aslef strike on September 1, 2023
Former Tory leader Sir Iain Duncan Smith said: ‘Labour is throwing money at its union paymasters like confetti’
Former transport secretary Grant Shapps criticised the fact that no reforms to working practices were demanded in return for the pay hike
The new offer is comprised of a 5 per cent hike for 2022/23, 4.75 per cent for 23/24 and 4.5 per cent for 24/25. Inflation is currently hovering around 2 per cent (stock image of passengers waiting on trains at Liverpool Street Station in London)
Aslef’s general secretary, who negotiated the deal said he was ‘pleased’ with the most recent offer presented by the government (stock image)
Aslef general secretary Mick Whelan on the picket line at London Euston station on April 5
Transport Secretary Louise Haigh (pictured arriving at Downing Street in London on July) yesterday defended the deal. She posted on X: ‘I promised to move fast and fix things’
Yesterday the Education Secretary was asked ‘who will pay’ five times by host Justin Webb during an interview on BBC Radio 4’s Today programme.
He said: ‘It must come, mustn’t it, either from the Department for Transport budget – so from other aspects of the transport infrastructure – or from taxpayers or farepayers?’
Ms Phillipson replied: ‘Overall, we are intending to deliver a big reform of the rail network. This is part of the wider reform that we will be delivering across our railways to make sure we get a better deal for passengers.’
Industry estimates suggest the pay hike, which is pensionable, could cost as much as £100million. It is more generous than the previous government’s offer of an 8 per cent increase over two years.
This also included conditions around reforming antiquated and costly working rules, dubbed ‘Spanish practices’, that the Tory administration wanted, and which would have reduced the cost of running the railways.Â
The new offer is comprised of a 5 per cent hike for 2022/23, 4.75 per cent for 23/24 and 4.5 per cent for 24/25. Inflation is currently hovering around 2 per cent.
Transport Secretary Louise Haigh yesterday defended the deal. She posted on X: ‘I promised to move fast and fix things.
‘That’s why we’ve agreed a deal with [the Aslef union] which – if members agree – will put an end to the rail strikes after two long years.’Â
Aslef boss Mick Whelan is a close ally of Ms Haigh and sits on Labour’s powerful national executive committee. Yesterday he admitted the union got the offer without giving anything in return.
The union will put it to 13,000 members in a ballot, and it has recommended they accept.
It comes after the new Labour Government signed off a 5.5 per cent pay increase for most other public sector workers – estimated to cost taxpayers £9.4billion.Â
Yesterday Mr Whelan suggested that Aslef may want to discuss pay again next year, in a sign the offer has emboldened his union. He told LBC: ‘We won’t be going back to the table for at least six to eight months.’
It came as shadow transport secretary Helen Whately wrote to Ms Haigh: ‘This substantial ‘no strings’ deal looks like it will mean higher costs for the taxpayer or farepayer. It is understandable that [they] will be concerned the costs will fall on their shoulders.’
A Department for Transport spokesman said: ‘This Government is doing the right thing by ending strikes and returning much needed certainty for passengers across the country.’
