Rail pay deal could end strikes that cost sector £3.5bn

By Gary Lloyd

- Last updated on GMT

New deal on track: End of the line for train strikes? (credit: Getty/coldsnowstorm)
New deal on track: End of the line for train strikes? (credit: Getty/coldsnowstorm)
Trade bodies have said the proposed new pay deal between the Government and rail union Aslef could signal the end of strikes that have cost the hospitality sector £3.5bn.

Train drivers who are part of the Aslef union are set to vote on a new pay deal aimed at ending long-running strike action, which began on 21 June 2022.

Talks between representatives of Aslef and the Department for Transport consistently broke down under the Conservative Government but have made progress since Labour came into power.

The new offer is for a 5% backdated pay rise for 2022-23, a 4.75% rise for 2023-24 and 4.5% increase for 2024-25 with Aslef stating the offer is a “no-strings” attached deal, meaning there would not be any conditional demanded on changes to working practices.

More than a dozen England-based train companies have been affected by strike action.

Extremely positive

UKHospitality chief executive Kate Nicholls said: “This is an extremely positive development and I hope that this leads to a firm end to ongoing strike action.

“We estimate that hospitality businesses have lost more than £3.5bn in sales throughout the period when businesses have been forced to shut, staff prevented from coming into work and families forced to cancel plans.

“I’m pleased that all parties involved have come together to reach this proposal and I hope this will see a line drawn under the dispute. Once resolved, we can enter a period of rebuilding trust in our rail network.”

UKH previously stated one weekend in April this year cost the sector some £387m​ in potential losses due to rail strikes.

The Night-Time Industries Association (NTIA) chief executive Michael Kill added: “The breakthrough in negotiations between the Government and Aslef is a crucial step forward for our sector.

“For over two years, industrial action has severely impacted the night-time economy, creating significant barriers for businesses, workers and patrons alike. The proposed pay deal, which marks a potential end to the long-running rail dispute, is a positive sign that the tide is turning.”

Renewed stability

He added that while there is still much work to be done, the prospect of renewed stability in rail services is a welcome development.

Kill said: “Reliable transport is the lifeblood of the night-time economy, ensuring millions of people can access our venues and events safely and conveniently.

“We have endured immense challenges, and this breakthrough offers a glimmer of hope for the future. It is imperative that we continue to engage in constructive dialogue to address the remaining hurdles, ensuring that our sector can thrive once again.

“This moment is a testament to the power of collaboration and the shared commitment to revitalising our industry.”

Many operators have highlighted the difficulties they have faced due to rail strikes including Nightcap​, BrewDog​ and Wells & Co​.

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