Trade unions remain discontent despite significant pay deals
Unions demand more as Labour secures 14.25% pay rise for train drivers
A rail union leader has issued a stark warning that trade unions will “never be content” despite recently securing a significant pay deal with the new Labour Government.
Mick Whelan, general secretary of Aslef, suggested that issues like low state pensions and cuts to winter fuel payments for older people leave workers dissatisfied.
This situation may lead to increased demands from public-sector workers, rather than ending strikes, due to the Government’s readiness to negotiate substantial pay deals.
This is a practical lesson for people studying economics – rent seeking activities are usually induced by government intervention.
//Trade unions will ‘never be content’, says Aslef general secretary
Comments by Mick Whelan may exacerbate fears that new pay deals for train…— Lintin 連天 (@leifolintin) September 9, 2024
Whelan’s remarks come shortly after TUC head Paul Nowak stated that substantial pay increases to counteract inflation’s impact on wages are a “legitimate aspiration.”
Transport Secretary Louise Haigh approved a 14.25 per cent pay increase for train drivers over three years without any reforms to the system, raising the average driver’s salary from £60,000 to nearly £70,000.
Speaking at the National Shop Stewards Network (NSSN) rally, a fringe event of the Trades Union Congress (TUC) conference in Brighton on Sunday, Whelan indicated that Labour’s efforts would not completely satisfy the movement.
He acknowledged improvements over the past 40 years but emphasized that they still fall short of their goals.
Whelan remarked: “So I am quite… not content, ‘cos I’ll never be content, I’m an argumentative b*****. And the movement will never be content.”
“While we have the lowest pensions in Europe and discussions about not providing heating payments, I’m not content,” he added.
He expressed his aim to create a movement reminiscent of the 1970s and 1980s, when being a trade union member held significant value.
In addition to rail workers, junior doctors have been offered an average pay increase of 22 per cent over two years to resolve industrial action.
Chancellor Rachel Reeves has agreed to an above-inflation salary increase of 5.5 per cent for millions of public-sector employees, costing nearly £10 billion.
Prime Minister Keir Starmer has raised concerns about a £22 billion deficit in the government’s finances, with significant tax increases expected in the upcoming Budget.
Tory critics argue that this funding gap is partly due to generous settlements with unions, raising concerns about how much the Chancellor will rely on tax increases to fund the agreed wage hikes.
What Other Media Are Saying
- Daily Mail The article suggests Labour’s decision to engage in talks with Aslef has opened a Pandora’s box, potentially leading to further strike chaos, as hinted by a rail baron.(read more)
- The Guardian reports that Labour’s handling of the train strike has opened a Pandora’s box, leading to chaos, as Aslef’s rail baron hints at more disruption.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
Why are trade unions never content?
Issues like low state pensions and cuts to winter fuel payments keep workers unsatisfied.
What pay deal did train drivers receive?
Train drivers got a 14.25% pay increase over three years.
How much will the average train driver’s salary increase?
The average salary will rise from £60,000 to just under £70,000.
What other public-sector pay increases have been approved?
Junior doctors got a 22% rise over two years, and public-sector staff got a 5.5% increase.
How will the government fund these pay increases?
Critics are concerned the Chancellor may rely on tax rises to cover the costs.
