Let's just say that it does happen, what impact will that have on the rest of the publicly funded workforce. Rail workers get lets say 11%, but the public sector as a whole is offered 2%-3%. Of course this will cause widespread anger, and likely trigger more industrial action. So the government relents and gives the entire public sector 11% as well. But they've got to fund it somehow, after this will be an unprecedented that's going to hit budgets hard.
Easy solution to this - remove TOCs from the definition of “public sector” - no real reason for them still to be there now that ticket revenues are back to decent levels. The concerns of the public sector as a whole are not aligned with those of the railway unions.
As for 11% - you do get this is a negotiation, don’t you? The unions won’t be expecting that - deals have been struck around the 5% mark at Scotrail and 8% at Crossrail. I expect something like that (likely to the lower end) is where most TOCs will end up. That’s roughly in accordance with current total wage growth this year so far in the wider economy, which is around 8% according to the ONS. So hardly unreasonable to expect on the railway - and of course this is less than inflation so still a pay cut in real terms!
- Tax rises from the 2023/24 fiscal year. Given that this will roll dangerously close to the next general election, its an unlikely option to be taken.
- Cutbacks in public services. Again given the looming GE, it would be a brave cabinet to announce cutbacks to fund pay rises, and of course realistically would be counterproductive. There's no point giving huge pay rises only to then cut back on the workforce & be even less able to deliver services.
- Quantitive Easing. This might seem like the easy option, just shake the magic money tree again and the problem goes away. Well sadly it doesn't, yes its been shaken many times over the last couple of years, but we are going to have to pay for that one way or another. The value of the pound is shrinking against the dollar, meaning that commodities bought in the American currency are going to be more expensive, and a lot of key ones are. I can't imagine printing more cash is going to help that one bit.
What does any of this have to do with ASLEF and TSSA? Trade unions aren’t concerned with stewardship of the wider economy - it’s not for them to decide how any particular expenditure is paid for.
Surely you understand that?
But let's just imagine one of these options are taken and its 11% pay rises are all around. What impact will that have on private sector workers? Of course they are going to start asking why they are not getting the same. Cue even more unrest and industrial action. And where employers cave in and award these rates, who do you suppose will pay for it? That's right, the customers. So prices rise even more, potentially triggering even higher rates of inflation, meaning even more claims for higher pay awards in the future, leading to even more cost. Suddenly we could find ourselves in a loop of hyper-inflation, constantly having to revalue of currency to the point where we will need a wheelbarrow full of notes just to buy a loaf of bread with cash (OK that might be the extreme conclusion, but you should hopefully get my point).
Another lesson in half baked amateur economics! Just like in the other thread, you appear to be regurgitating the bad faith government line: “we can’t give railway workers a pay rise because of inflation”, while in the meantime that same government has massively increased the state pension, is increasing the NMW and Tory leadership hopefuls are queuing up to offer billions worth of tax cuts. Any suggestions that inflationary pressure is of any concern to this government is laughable.
You really don’t understand unions do you?
Indeed!
As an ASLEF member. I pay dues for two reasons: 1 an insurance policy 2 for the union to protect Ts and Cs and prevent by standard of living from being eroded, by fighting if necessary. It really is as narrow as that. Comparisons to other industries, nurses being paid £25k, people earning a pittance in retail etc. are neither here nor there. They have their own unions to fight their corner.