National Express West Midlands Bus Strike

[duncanp]

There is going to be a strike on National Express West Midlands buses on Thursday March 16th.

From the report it is not clear whether it will be a continuous strike starting on that date, or just a one day strike.

If it is a continuous strike, the union would have to be confident that it can get the improved offer it is seeking, otherwise their members will suffer a significant loss of earnings after a week or two, which would make the strike difficult to maintain.

National Express West Midlands drivers vote to strike

The Unite union says more than 3,000 workers will walk out across the West Midlands from 16 March.

www.bbc.co.uk

National Express West Midlands drivers vote to strike​

A bus network's drivers who cover routes across a swathe of the region have voted to strike over pay.
More than 3,000 National Express West Midlands drivers are set to walk out from 16 March after Unite members rejected an 11.1% pay rise, according to the union.
They will be joined by about 200 engineers, who voted to strike in January.
National Express West Midlands said the action was "extremely disappointing".
It apologised to customers for the significant disruption the industrial action would cause, with a "very limited service" running on strike days.
It runs 1,600 buses on routes across Birmingham, Wolverhampton, Coventry, Walsall, Dudley and West Bromwich.
"The company needs to put forward an offer that our members can accept," said Unite officer Sulinder Singh.
About 96% of balloted drivers voted in favour of continuous strike action, some of whom earned £11.80 an hour, according to the union.
Unite argues the pay increase offered to drivers constitutes a real-terms pay cut amid cost-of-living pressures.
The announcement of strike action coincides with National Express reporting a tripling in annual pre-tax profits to £145.9m, up from £39.7m in 2021.
The results, which surpassed pre-pandemic levels for the first time since the Covid outbreak, have led to shares in the group soaring by 13%.
The operator said 60% of drivers had voted to strike based on an outdated pay offer of 8.1%, with an improved deal tipping the majority of salaries over £30,000.
"Since the ballot, we have offered the union a pay deal for drivers worth 13.4%, made up of 11.1% for 2023 and a retention payment worth 2.3%," a spokesperson said. "This is on top of 6% our drivers received in November."

 

[Russel]

So all in, they have been offered a 19.4% pay rise (13.4 + 6 already given), and this still isn't enough?

This is way above inflation, so how is it a real terms pay cut?

What are these Unions doing, are they actively trying to destroy businesses and jobs?

 

[P Binnersley]

The Union (Unite) paint a different picture.

National Express had claimed it offered drivers a 14 per cent rise, however the deal was in fact worth just eight per cent. Drivers have since been offered 11.1 per cent on basic pay, while engineers have been offered 11.5 per cent.

With the real rate of inflation, RPI, at 13.4 per cent, the offers constitute a pay cut. The situation has been made worse by the below industry standard wages paid by the company.

Interesting that they have gone for an all-out strike rather than random days which will hopefully accelerate a settlement.

 

[Deerfold]

So all in, they have been offered a 19.4% pay rise (13.4 + 6 already given), and this still isn't enough?

This is way above inflation, so how is it a real terms pay cut?

What are these Unions doing, are they actively trying to destroy businesses and jobs?

No, 6% rise for last year, one off payment of 2.3% and an offer of 11.1% for this year.

 

[Russel]

No, 6% rise for last year, one off payment of 2.3% and an offer of 11.1% for this year.

Okay, ignoring the 2.3% payment as I didn't realise it was a one off, 6% + 11.1% is still an 17.1% pay rise over two years, which is still above inflation which is around 11%...

I'm not sure what the issue is here.

 

[duncanp]

The Union (Unite) paint a different picture.


Interesting that they have gone for an all-out strike rather than random days which will hopefully accelerate a settlement.

The union are saying that the deal on offer is only worth 8%.

Even if you accept that, a 6% rise in November last year + 8% now = 14%, which is above the 13.4% RPI inflation rate that the union quote in the web page you reference.

In going for an all out strike, the union must be confident that an improved pay offer will be forthcoming, possibly before the strike starts.

Because if the strike goes on for months, then the union members will suffer.

Perhaps they are copying the tactics used in the West Midlands Metro strike last year.

There was a series of one day strikes from the middle of October which didn't seem to have much effect. But in the middle of November they threatened to escalate it to an all out strike, which resulted in an improved pay offer which the members accepted.

I get the feeling that if the pay offer is slightly improved, possibly by making the 2.3% one off payment permanent, the union will be able to put this to the membership and claim some kind of win in this dispute.

 

[Tetchytyke]

Okay, ignoring the 2.3% payment as I didn't realise it was a one off, 6% + 11.1% is still an 17.1% pay rise over two years, which is still above inflation which is around 11%...

Inflation is compounded, which is something a lot of people don’t understand and the government has no incentive to educate on. So one-off payments are useless as the inflation from the last year is baked in. Unless we get deflation- inflation in negative numbers- then we live with the 12% rise forever. We have not had sustained deflation since 1933.

I imagine that if the one-off payment becomes permanent then the strike will be averted.

 

[mb88]

What are these Unions doing, are they actively trying to destroy businesses and jobs?

‘These unions’ are taking the action which has been mandated by their membership in a ballot.

 

[duncanp]

There is a note on the National Express West Midlands website saying that they anticipate running a "limited service" from March 16th.

It remains to be seen what this limited service means, but it will probably mean no early morning or late evening service, and some of the more marginal routes withdrawn completely.

But I think there is about a 50:50 chance that there will be an improved pay offer that will be enough to avert the strike.

‘These unions’ are taking the action which has been mandated by their membership in a ballot.

I don't know what was said on the ballot paper, and whether the union membership was voting explicitly for an all out strike, or just for industrial action.

 

[Russel]

Inflation is compounded, which is something a lot of people don’t understand and the government has no incentive to educate on. So one-off payments are useless as the inflation from the last year is baked in. Unless we get deflation- inflation in negative numbers- then we live with the 12% rise forever. We have not had sustained deflation since 1933.

I imagine that if the one-off payment becomes permanent then the strike will be averted.

As I said, ignoring the 2.3% as I didn't know it was a one off, it's still a 17.1% pay rise and 17.1% is well above inflation...

The union has said this is a real terms pay cut, I just don't see how that can be true.

 

[Deerfold]

As I said, ignoring the 2.3% as I didn't know it was a one off, it's still a 17.1% pay rise and 17.1% is well above inflation...

The union has said this is a real terms pay cut, I just don't see how that can be true.

Over 2 years. Last year's was November after negotiations.

 

[duncanp]

There is now a page on the website specifically to deal with information about the strike

https://nxbus.co.uk/west-midlands/service-updates/strike-action-from-16th-march-2023

 

[Russel]

Over 2 years. Last year's was November after negotiations.

Yes, I know, I did read the statement in the first post...

But which ever way you put it, it's still at 17% pay rise over two years which is higher than the 11% inflation.

 

[Tetchytyke]

But which ever way you put it, it's still at 17% pay rise over two years which is higher than the 11% inflation.

Inflation is compounded, so when looking at multi-year pay deals you need to look at how inflation compounds over that same period.

According to the Bank of England calculator, something that cost £1 in 2020 now costs £1.17- a 17% rise.

Two years of 10% inflation results in a 21% increase in prices (£1 to £1.10 to £1.21). As I say, many people don’t understand this and it suits all governments that they don’t.

 

[Deerfold]

Yes, I know, I did read the statement in the first post...

But which ever way you put it, it's still at 17% pay rise over two years which is higher than the 11% inflation.

It's not 11% inflation over 2 years, though, is it?

 

[duncanp]

It's not 11% inflation over 2 years, though, is it?

This is probably what the dispute is about.

How much the pay offer is really worth.

The union are taking account of the fact that inflation is compounded whereas the company are not.

Plus the fact that the union are using the higher RPI rate of inflation (13.4%) for their calculations, whereas the company are using the CPI rate of inflation (10.1%).

 

[Mwanesh]

The Unions are also basing it on the Group results which also include group operations. They said the company is profitable

 

[Simon75]

The Unions are also basing it on the Group results which also include group operations. They said the company is profitable

But how profitable is West Midlands v other parts of the group, eg Coventry and the coaches?

 

[WM Bus]

But how profitable is West Midlands v other parts of the group, eg Coventry and the coaches?

Coventry is part of West Midlands Travel Limited and will be affected by the strike as well.

Think National Express have operations overseas to in the US etc.

 

[Mwanesh]

The coaches have probably done well from the rail strikes. Don't know about the other countries. Can't see the breakdown for the West Midalnds

 

[GusB]

It doesn't mention how the profit is broken down between the various business units, but 367% is the increase across the group, apparently!

National Express announces 367% rise in profits

National Express Group shares ended the week strongly after the company reported a tripling of profits in 2022 compared to the previous year.

www.route-one.net

National Express Group shares ended the week strongly after the company reported a tripling of profits in 2022 compared to the previous year, amid a 23% surge in passenger journeys.

National Express reported an underlying pre-tax profit of £145.9 million – up 367% from £39.7 million in 2021.

Boosted by rail strikes, its coach sector fared particularly well last year, the Group revealing a doubling of passenger numbers.

Shares in the company rose as much as 16% during the opening hours of Thursday to 143.70p and held strong on Friday to close at 142.49p.

Overall revenues rose to £2.81 billion, which was a 29.4% rise on last year, as the company also benefited from positive developments in its overseas arms, such as subsidiary ALSA in Spain, Morocco, Switzerland and Portugal.

I'd be wanting a slice of that if I was one of their employees; no doubt the big boss will likely get a nice fat bonus out of it!

 

[Geordie driver]

It has been heartening to see my brother's and sisters in the industry stand up for themselves and win time and again after decades of gaslighting into poverty by the major operators.

 

[Deerfold]

It doesn't mention how the profit is broken down between the various business units, but 367% is the increase across the group, apparently!

National Express announces 367% rise in profits

National Express Group shares ended the week strongly after the company reported a tripling of profits in 2022 compared to the previous year.

www.route-one.net

I'd be wanting a slice of that if I was one of their employees; no doubt the big boss will likely get a nice fat bonus out of it!

They're still running at lower income and profits than in 2019. It's not surprising 2020 and 2021 were much lower.

 

[Kevpbus]

They're still running at lower income and profits than in 2019. It's not surprising 2020 and 2021 were much lower.

During the Covid period, the Government's rules for BRG support at first did not allow any profit to be made and then restricted the level of profits that were allowable. Not a surprise than 2020 and 2021 were therefore much lower.

 

[winston270twm]

It doesn't mention how the profit is broken down between the various business units, but 367% is the increase across the group, apparently!

National Express announces 367% rise in profits

National Express Group shares ended the week strongly after the company reported a tripling of profits in 2022 compared to the previous year.

www.route-one.net

I'd be wanting a slice of that if I was one of their employees; no doubt the big boss will likely get a nice fat bonus out of it!

Of the £2.8 Billion NX Group Turnover, it is broken down as follows:

ALSA = £962.5 Million (34%)
North America = £1048.2 Million (37%)
UK = £528.3 Million (19%)
German Rail = £268.5 Million (10%)

The £197.3 NX Group Profit:

ALSA = £103.9 Million
North America = £68.4 Million
UK = £25.6 Million (Which includes National Express West Midlands & Coventry, National Express Coaches, National Express Transport Solutions & National Express Accessible Transport)
German Rail = £17.6 Million

See pie chart on page 15:
National Express Full Year Results 2022 Presentation

The subsidary accounts aren't on Companies House yet, but the prior year accounts show West Midlands Travel Ltd (t/a National Express West Midlands) up too 31st Dec 2021:

Turnover = £279.7 Million
Operating Profit = £11.6 Million (4.1% operating profit margin)

West Midlands Travel Limited Annual Report & Financial Statements For The Year Ended 31 Decemeber 2021

 

[DriverNX]

Hi, I am a driver with NX. I am happy to assist with any questions.

 

[duncanp]

Hi, I am a driver with NX. I am happy to assist with any questions.

Thank you.

What is the average salary for a bus driver for National Express West Midlands, and how has that changed over the past few years?

Given that the union has called an all out strike, how long would you be prepared to strike for, taking into account the loss of earnings as a consequence of being on strike?

I can't help but think that the union is copying the tactics used last year on West Midlands Metro, where there was a series of one day strikes from the middle of October for about a month. When they threatened to escalate this into an all out strike from the end of November, it resulted in an improved pay offer which the membership accepted in a ballot.

My reading of the situation is that there is a dispute between the company and the union over

• How much the latest pay offer is worth in percentage terms
• How that relates to inflation (with the company using the CPI measure of inflation and the union using the higher RPI measure)
• The ability of the company to afford a pay rise, with the union quoting the rise in profits for the whole National Express group rather than just the National Express West Midlands subsidiary.

I think there is scope for arbitration on the above points, and I hope that the strike can either be averted, or settled before it drags on for too long.

 

[158756]

The subsidary accounts aren't on Companies House yet, but the prior year accounts show West Midlands Travel Ltd (t/a National Express West Midlands) up too 31st Dec 2021:

Turnover = £279.7 Million
Operating Profit = £11.6 Million (4.1% operating profit margin)

West Midlands Travel Limited Annual Report & Financial Statements For The Year Ended 31 Decemeber 2021

Staff costs were £165 million, so 17% of that is £28 million which will have to come from passengers somehow (It won't work exactly like that with pension and NI costs, but close enough). Half the turnover was government support as well, if passenger numbers haven't recovered they won't be taking anywhere near that much when the support ends.

Obviously staff should be paid a reasonable wage, but there is a serious lack of cash in the bus industry at the moment to pay for anything.

 

[DriverNX]

Thank you.

What is the average salary for a bus driver for National Express West Midlands, and how has that changed over the past few years?

Given that the union has called an all out strike, how long would you be prepared to strike for, taking into account the loss of earnings as a consequence of being on strike?

I can't help but think that the union is copying the tactics used last year on West Midlands Metro, where there was a series of one day strikes from the middle of October for about a month. When they threatened to escalate this into an all out strike from the end of November, it resulted in an improved pay offer which the membership accepted in a ballot.

My reading of the situation is that there is a dispute between the company and the union over

• How much the latest pay offer is worth in percentage terms
• How that relates to inflation (with the company using the CPI measure of inflation and the union using the higher RPI measure)
• The ability of the company to afford a pay rise, with the union quoting the rise in profits for the whole National Express group rather than just the National Express West Midlands subsidiary.

I think there is scope for arbitration on the above points, and I hope that the strike can either be averted, or settled before it drags on for too long.

Hi,

The salary of a bus driver varies considerably depending on a number of factors. Length of service and overtime being the two main factors however, basic salary ranges between £23.3 and £27.3 K. I am fairly moderate when it comes to being a union member and having previous business management and ownership experience I have quite a broad view.

You may already know that the bus industry in the Midlands area has had a huge issue with driver shortages and many of us feel this is due to the long shifts, unsociable hours and the amount of abuse we get on a daily basis. When this is then compared to our wage many drivers feel we do not earn enough to warrant the stress of the job. Many colleagues have moved into HGV driving where the pay can be considerably better and there is no customer abuse.

Towrds the end of 2022 we voted on new terms and conditions in relation to our contacts. The approved terms and conditions promised better shift patterns, less split shifts, the ability to choose your own work life balance and a slight pay rise. The increase in pay was stipulated by the company that this small increase (around 30p ph) would not be included in any pay deal and was explicitly not a pay deal.

Fast forward to afew months later and none of the new terms and conditions have been implemented despite continuous promises that they will be and newly recruited drivers are continuing to leave after only weeks of being recruited as well as well established drivers with decades of experience. Furthermore, the pay offer we were originally offered before Christmas was more of a threat in that it stated if we did not accept the deal then compulsory redundancies will be made. The deal also did include our small rise that we had in October which we were explicitly told would not be. The company told us it was a 14% increase which was completely false as a simple calculation revealed it was 8% on our current rate and 11% compared to before our rise.

I understand another offer has been made to the Union and it amounted to around 11% on top of our current wage plus a £630 lump sum paid at the end of our pay deal year. Then another smaller increase of 2.4% in real terms. This offer has not been put to drivers and I personally do feel it should have been as it is a much improved offer.

I know many members of the public feel we are well paid and maybe 23 to 27K a year doesn't sound too bad and with our already refused offer it could have been upto 30k for top paid drivers. I get that opinion however also ask yourself, why are so many new drivers leaving, why is the industry struggling to recruit, why are drivers with 20 plus years service moving to other industries? HGV drivers are paid generally much more, train drivers are paid more still. Bus drivers get daily verbal abuse, physical abuse including spitting and such. I enjoy my job and I may have personally voted yes to the last pay offer but obviously the union feels it is not good enough.

Then comes the issue of whether the company can afford a better pay deal. Let's be honest, buses, no matter what will always run, the government provides subsidies etc to ensure this when money is tight. One of the main factors contributing to our company not performing well is the shortage of drivers. The shortage of drivers is driven partly because of the poor balance between work, life balance and pay. When we lose huge amounts of mileage we lose huge amount of revenue and I understand we also have to pay large penalties to TFWM. The company in my view can't afford not to give drivers a better deal.

I do not want to go on strike. Drivers will be paid strike pay for the period of the strike but this is not as much as our normal earnings. I hope the union and the company can come to an agreement before the 16th. We are professional people who work very hard and unfortunately put up with a lot from abusive passengers I'm sorry to say.

I hope this answers a few questions. Please ask if you want to know anything more.

 

[duncanp]

Fast forward to afew months later and none of the new terms and conditions have been implemented despite continuous promises that they will be and newly recruited drivers are continuing to leave after only weeks of being recruited as well as well established drivers with decades of experience. Furthermore, the pay offer we were originally offered before Christmas was more of a threat in that it stated if we did not accept the deal then compulsory redundancies will be made. The deal also did include our small rise that we had in October which we were explicitly told would not be. The company told us it was a 14% increase which was completely false as a simple calculation revealed it was 8% on our current rate and 11% compared to before our rise.

I understand another offer has been made to the Union and it amounted to around 11% on top of our current wage plus a £630 lump sum paid at the end of our pay deal year. Then another smaller increase of 2.4% in real terms. This offer has not been put to drivers and I personally do feel it should have been as it is a much improved offer.

I know many members of the public feel we are well paid and maybe 23 to 27K a year doesn't sound too bad and with our already refused offer it could have been upto 30k for top paid drivers. I get that opinion however also ask yourself, why are so many new drivers leaving, why is the industry struggling to recruit, why are drivers with 20 plus years service moving to other industries? HGV drivers are paid generally much more, train drivers are paid more still. Bus drivers get daily verbal abuse, physical abuse including spitting and such. I enjoy my job and I may have personally voted yes to the last pay offer but obviously the union feels it is not good enough.

Then comes the issue of whether the company can afford a better pay deal. Let's be honest, buses, no matter what will always run, the government provides subsidies etc to ensure this when money is tight. One of the main factors contributing to our company not performing well is the shortage of drivers. The shortage of drivers is driven partly because of the poor balance between work, life balance and pay. When we lose huge amounts of mileage we lose huge amount of revenue and I understand we also have to pay large penalties to TFWM. The company in my view can't afford not to give drivers a better deal.

I do not want to go on strike. Drivers will be paid strike pay for the period of the strike but this is not as much as our normal earnings. I hope the union and the company can come to an agreement before the 16th. We are professional people who work very hard and unfortunately put up with a lot from abusive passengers I'm sorry to say.

I hope this answers a few questions. Please ask if you want to know anything more.

Thanks for you detailed reply - it helps us members of the travelling public understand the situation.

The union should insist that any changes to terms and conditions already agreed should be implemented without delay, and make this a condition that must be satisfied before the strike is called off.

It is a pity that you are not being given the chance to vote on the latest pay offer given that you say you are inclined to accept it. What do your colleagues feel, and perhaps the union reps need to made aware of your feelings on the matter.

What increase in the pay offer or improvements to terms and conditions does the union hope to achieve with the strike? How long is is prepared to continue with the strike, and will any improvement to the pay offer be worth the loss of earnings suffered as a consequence of the strike.

I am sorry that bus drivers have to suffer abuse as part of their job - us passengers have to put up with anti social behaviour on a daily basis as well. Anti soc

There is no easy answer to this issue, but you can make sure that the pay reflects this and at least provides some partial compensation.

If I was a union rep handling this matter, I would be talking to the company about a long term pay deal, over a period of 5 years, with an agreed formula for determining pay which takes account of inflation and the company's cost base, but also aims to reduce the turnover rate (the % of drivers who leave each year)

As you say, this would reduce the penalties you have to pay for lost mileage to TFWM, and it would help to retain staff if they could have some certainty that the value of their pay and benefits package would be preserved in real terms.

I still hope that the strike can be called off at the last minute.

The company say that they are continuing to talk to the union, and with a bit of give and take on both sides I am sure that a settlement can be reached.