Deputy Prime Minister Dominic Raab stated that ministers cannot allow unions to win the struggle for greater pay because it would spark a “vicious cycle” of inflation that would harm the poor.
The deputy prime minister stated that the government was taking a “strong stance” with labor unions to prevent “the erosion of pay packets by inflation.”
Mr. Raab told that the recent official inflation numbers showing the rise in the cost of living reaching a new four-decade high of 9.1 percent demonstrated the necessity for public sector pay reduction.
Amid the longest train strike in three decades and predictions of further industrial action throughout the business and public sector later this year, he hinted that the publicly-backed rail sector will continue to resist RMT requests for a 7 percent pay raise.
It is currently believed that a 4 percent offer, also tied to modernization reforms, is on the table. Earlier this week, negotiations on the rail issue collapsed after an offer of 2 percent plus an additional 1 percent tied to modernization measures was rejected.
Mr. Raab claimed that large pay increases would cause inflation to remain elevated for a prolonged period, eroding the value of salaries.
He said: “We well comprehend the stress that those with low salaries are currently experiencing, as they struggle to make ends meet.
“We do need the type of pay restraint in the public sector that we have been discussing; otherwise, inflation would remain elevated for a longer period.
We cannot allow the unions to win this battle in the aggressive manner in which they have proceeded, as it will only harm the lowest members of our society.
Mr. Raab stated that the government was taking a “strong stance” with labor unions to stem the “inflation-induced erosion of wage packets.”
He continued, “On some level, I can comprehend the union’s belief that it is their responsibility to safeguard their people.”
However, he stated that it would be “very detrimental” for the train business to agree to a 7 percent salary raise.
Lucy Powell, the shadow culture secretary for Labour, accused Dominic Raab of “inciting” staff to strike and claimed the Tories were “rejoicing” over the disagreement as they attempt to sow discord for political benefit.
She told that “All the people who were so inconvenienced yesterday… left out of pocket, or who were unable to go to work, would be justifiably furious that this administration is advancing these strikes to save face at the next election.”
Additionally, Ms. Powell was questioned about the fissures that the strike has shown within her party.
When asked if Labour MPs in shadow ministry roles who stood on picket lines against an instruction from the party leader to refrain from doing so faced dismissal, Ms. Powell responded, “I’m certain these problems will be examined.”
