Graeme Wearden 

No 10 says Sunak wants unions to ‘reach fair agreement’ with employers as head of PCS warns action will escalate in January – as it happened

PCS says it is planning to escalate industrial action after Christmas as Downing Street calls for talks between unions and employers
  
  

People waiting beneath information screens displaying train times at Kings Cross Station yesterday, after a strike by members of the RMT Union working for Network Rail.
People waiting beneath information screens displaying train times at Kings Cross Station yesterday, after a strike by members of the RMT Union working for Network Rail. Photograph: Henry Nicholls/Reuters

Afternoon summary

Time to recap….

Train passengers have facing fresh disruption today as staff at two operators strike in the ongoing dispute over pay and conditions.

Members of the TSSA union who work for West Midlands Trains (WMT) and Great Western Railway (GWR) began a 24-hour strike at noon today. WMT are not running any services today or tomorrow, while GWR will operate a significantly reduced level of service throughout the day.

TSSA organisating director Nadine Rae said the government should give train operators the green light to ‘freely negotiate’, and accused ministers of undermining negotiations.

She told the Today programme that several weeks of negotations had taken place before Christmas, but….

Whilst we thought those talks were progressing, what came out of it at the end was something completely different from what we were talking about.

Which says to us that the government has interfered with the negotiation process.

The head of the Public and Commercial Services union, which represents civil servants who work in UK government departments, has warned that the industrial action gripping the country will escalate next year.

PCS general secretary Mark Serwotka told Sky News that all the union’s members could come out on strike early in the new year. He also suggested that unions could coordinate and syncronise their industrial action in 2023, if the government did not negotiate higher pay deals.

Serwotka predicted:

I think it is only a matter of time before all the unions recognise the government is the cause of these disputes, so we will work closer together, and I think we will see action that is coordinated and syncronised, and escalating.

PCW members within Border Force, which handle passport control, began a four-day strike at six UK airports today. Arriving passengers were encouraged to use eGates, and warned to expect longer waits.

But as the Guardian reported last weekend, armed forces members who are covering for striking Border Force staff at passport control do not have the power to detain people they suspect of criminal activity.

Driving examiners in 71 test centres in Eastern England and the Midlands also held strike action today, as part of the PCS union’s national campaign on pay, pensions, job security and redundancy terms.

The PCS insist that the 2% pay rise being offered to civil servants is not acceptable, when inflation is at double-digit levels.

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Downing Street has said it wants to see unions hold further talks with employers to “reach a fair agreement” and end strike action.

A No 10 spokesman told reporters:

“We want the strikes to come to an end, we want people to agree a fair pay settlement but, as we’ve said before, what we can’t do is allow for double-digit pay rises that will embed inflation going forward, which will impact the amount of money people have going forward.”

A bin strike in the Wirral has ended, after the Unite union secured a 15% pay rise for Biffa workers.

Tens of thousands of train travellers are facing disruption caused by a combination of regional rail strikes, a national overtime ban and staff shortages today, says travel journalist Simon Calder.

He points out that planned engineering works are affecting key routes and stations, while unplanned technical problems are leading to further cancellations. That’s on top of today’s strikes at Great Western Railway at West Midlands Trains which began at noon today.

More here.

Wirral bin strikes end after Unite secures 15 percent pay rise

A bin collection strike in the Wirral has ended, after a pay deal was reached.

Over 200 members of the Unite union employed by Biffa, the waste management company, on an outsourced Wirral council contract, have secured a 15% pay rise backdated to April 2022, Unite says.

Class 2 HGV drivers will also see their hourly rates increase by £1.49 on top of the percentage pay increase, the union adds.

The workers took a number of days of strike action in December, but all further scheduled strike action has now been cancelled.

Unite general secretary Sharon Graham said:

“This is another win for Unite members; this pay increase was won by workers organising in a trade union and standing together for a better deal.

“Unite the union is doing what it says on the trade union tin – we are delivering jobs, pay and conditions victories for our members. We are winning for workers in the worst cost of living crisis in decades.”

The Liverpool Echo reports that the agreement to suspend the strikes came about after a Christmas Day summit involving the Unite union and Biffa, led by Wirral Council leader Janette Williamson.

Updated

Back in the markets, European natural gas prices have fallen to levels last seen just before the Ukraine war began in February.

The month-ahead European benchmark gas prices fell as low as €76.78 per megawatt hour — its lowest level in 10 months, according to Refinitiv data:

Back in February, this Dutch TTF gas future for the coming month was trading around €70 per megawatt hour, but surged to €335/MwH in early March. It later jumped again, to €343/MwH in August as European countries scrambled to fill their gas storage facilities.

Near-record imports of liquified natural gas, fuller-than-normal inventories, and relatively mild weather in Europe have all helped to ease supply concerns, pushing prices down.

Downing Street has also argued today that a “fair agreement” to end strike action should not involve double-digit pay rises for workers.

A No 10 spokesman claimed such salary increases would “embed inflation”, as well as encouraging union representatives and employers to hold further talks in a bid to find a resolution.

He told reporters:

“We want the strikes to come to an end, we want people to agree a fair pay settlement but, as we’ve said before, what we can’t do is allow for double-digit pay rises that will embed inflation going forward, which will impact the amount of money people have going forward.”

The CPI measure of UK inflation shows prices rise by 10.7% in the year to November, while RPI inflation hit 14%.

The PCS union have organised picket lines at airports where Border Force staff are on strike today, and at driving test centres where driving examiners are taking industrial action.

PCS head Serwotka: industrial action will escalate in January

The head of the Public and Commercial Services Union has predicted that industrial action will escalate across the UK next year, unless the government negotiates a better pay deal.

Mark Serwotka, general secretary of the PCS, told Sky News that his union has a legal mandate that runs until May, adding:

We are planning to significantly escalate the industrial action after Christmas.

So far, around 4,000 to 5,000 PCS members have taken part in the current strike action (including Border Force staff today), he says, but 100,000 members have voted to go on strike.

Serwotka predicts:

So we will see this significantly escalate, and probably early in the new year, all of our members will come out on strike at the same time.

That escalation will involve staff at the Driver and Vehicle Licensing Agency (DVLA) from 9th January (details here).

Serwotka also predicts an escalation right across the economy. He says half a million teachers are currently balloting for industrial action, while firefighters are also balloting for industrial action, plus there are ongoing disputes with paramedics, health sector workers, university lecturers, postal workers, train drivers and other rail workers.

Serwotka explained that civil servants have only been given a 2% pay rise, at a time when 40,000 are using foodbanks, and 45,000 are claiming in-work benefits because they are the in-work poor.

He says:

I think it is only a matter of time before all the unions recognise the government is the cause of these disputes, so we will work closer together, and I think we will see action that is coordinated and syncronised, and escalating.

Because, if we go into 2023 with millions of people suffering in-work poverty, including the government’s own staff, something has to be done.

So they either negotiate, or I believe we will see the action escalate.

No 10 says it wants unions to hold further talks with employers to 'reach fair agreement'

Downing Street has said it wants to see unions hold further talks with employers to “reach a fair agreement” and end strike action, PA Media report.

A No 10 spokesman told reporters:

“We want the strikes to come to an end, we want people to agree a fair pay settlement but, as we’ve said before, what we can’t do is allow for double-digit pay rises that will embed inflation going forward, which will impact the amount of money people have going forward.”

Asked if any deal is close between rail unions and bosses (as the Daily Mail suggested today) the spokesman said:

“It’s for the employers and the unions to do the detailed negotiations but our position remains that we want to see those strikes come to an end.

“We’ve seen the disruption they have caused not just this week and next week but throughout the Christmas period.

“We believe a fair and reasonable offer was put forward, which the RMT rejected despite a significant number of members voting to accept it, but now we want to see the unions get back round the table with the employers and reach a fair agreement.”

The spokesman said contingency planning over the Christmas period has been taking place, adding:

“The Prime Minister wants to see employers and unions reach a fair agreement.”

Updated

Shares are higher in the City of London this morning, as traders return to their work after the Christmas break.

The FTSE 100 index of blue-chip shares has gained 64 points, or almost 0.9%, to 7,537 points, near to the six-month high touched at the start of the month.

Companies exposed to China, such as mining companies and Asia-Pacific focused financial stocks, are rallying.

Copper producer Antofagasta (+3%) and Prudential (+2.7%) are leading the risers.

Copper prices in London hit a two-week high this morning, following Beijing’s decision to ease rules on travel in and out of the country.

The easing of China’s Covid restrictions could help to unblock global supply chains.

But…. Stephen Innes, managing partner at SPI Asset Management, says China’s reopening is a double edges sword for inflation.

The good news is that inflation subsides as China reprises its role as a supplier of low-cost goods globally and supply chain bottlenecks ease.

Still, the bad news is as growth accelerates through Q1, China’s insatiable demand for raw materials and all things energy will push up prices of those commodities, much of to the consternation of the Fed and ECB.

Other European markets are calm – the French CAC is flat, while Germany’s DAX is down 0.14% and Spain’s IBEX is 0.3% higher.

As flagged earlier, driving examiners have also launched a five-day strike today as part of escalating industrial action by civil servants in a dispute over pay, jobs and pensions.

The walk-out involves PCS members in 71 test centres in eastern England and the Midlands who are employed by the Driver and Vehicles Standards Agency (DVSA) as driving examiners and local driving test managers. More here.

Full story: travellers face disruption as rail and Border Force staff take strike action

Passengers are steeling themselves for further travel disruption across the UK as rail and Border Force staff launch a fresh wave of strikes affecting thousands heading home after Christmas.

Border Force staff at Britain’s largest airports, including those in passport control, resumed action over pay, jobs and working conditions on Wednesday. The 1,000 members of the Public and Commercial Services Union (PCS) are striking for four days until New Year’s Eve.

Civil servants were being called in to help military personal covering striking workers at airports including Heathrow and Gatwick in London, as well as Birmingham, Cardiff, Glasgow and Manchester, and the port of Newhaven.

More here:

Elsewhere in the travel sector, Italy’s antitrust regulator has opened an inquiry into possible price-fixing for flights in and out of Sicily by airlines including Ryanair, Wizz Air and easyJet.

The probe follows a complaint by consumer group Codacons, which alleged “a specific collusive will” of airlines to raise prices for domestic flights to and from Sicily during the Christmas holidays, the regulator said in its weekly bulletin.

The complaint also targeted state-owned ITA Airways, the successor of former flagship carrier Alitalia, it added.

EasyJet has told Reuters it denies any wrongdoing, saying:

“easyJet strongly refutes these claims, adheres to relevant laws and regulations and will fully cooperate with the authorities to demonstrate it has always acted lawfully and competitively in the best interests of consumers.”

Victoria Scholar, head of investment at interactive investor, says the investigation could be another potential headwind for some of the big airlines after an extremely difficult year.

2022 was meant to be the year of the comeback for international travel with a major pick-up in demand post pandemic.

However there have been serious challenges with baggage handling, cancellations, the war in Ukraine, strikes and general disruption which have prompted these stocks to slide year-to-date, resulting in another difficult year for the airline industry.”

City news: DP Eurasia, which runs the Domino’s Pizza brand in Turkey and Russia, is considering selling its Russian operations – 10 months after the Ukraine war began.

DP Eurasia says it is “evaluating its presence in Russia”, the impact of sanctions, and “its continuing ability to serve its customers in Russia”.

It told shareholders that it is working on a possible sale, saying:

Consequently, the Company is considering various options which may include a divestment of its Russian operations.

Whilst work on a potential transaction is ongoing, there can be no certainty as to the outcome.

Earlier this month, DP Eurasia was named in the House of Commons as one of the companies still doing business in Russia.

Here are the details of the TSSA strike action.

Is a rail deal 'nearly there'?

The Daily Mail reports today that rail union and industry bosses are ‘nearly there’ in their efforts to agree a pay deal, with RMT union boss Mick Lynch having apparently softened his stance and become more ‘deal-minded’ than before.

Asked about this, TSSA organisating director Nadine Rae reiterates that the government should give train operators the green light to ‘freely negotiate’.

She tells the Today programme:

Things have not changed since before Christmas in terms of a deal.

It’s still within the government’s gift to ensure the employers can freely negotiate with us, and can put together a deal that’s acceptable to our members, and affordable to employers.

Q: But is it too optimistic to say that a deal is ‘nearly there’?

It’s not optimistic if the government allows the employers to freely negotiate, Rae replies, adding:

It’s the government that needs to shift this situation, and we really want them to. We know the disruption is frustrating for people.

Updated

TSSA: Government has interfered with negotiation process

Nadine Rae, organising director at the TSSA union, says government interference has undermined negotiations with train operators over a pay deal.

Speaking on Radio 4’s Today programme, Rae explains that TSSA’s members are very hopeful that a deal can be reached with their employers, as the union reached an agreement with Network Rail this month (on a minimum 9% pay rise, job security to 2025, and guarantees on terms and conditions).

Rae says the government has to give permission to the train operating companies to put a deal forward to the union, and “that is where things have been stuck”.

The TSSA held almost four weeks of talks with the train operators before Christmas, she says, adding:

Whilst we thought those talks were progressing, what came out of it at the end was something completely different from what we were talking about.

Which says to us that the government has interfered with the negotiation process.

Q: If the government came up with the money, are you ready to accept changes to working practices that already take place in some parts of the rail network?

Rae says TSSA members are “absolutely realistic” that change is required in the railway, and want to engage on the issues properly, with deep and proper discussions and consultation.

There isn’t “resistance to change”, she insists, but those changes should leave people with job security, and be safe.

Currently, the negotiations are being used to “lever change through” without that proper consultation happening, Rae adds.

Gatwick has told passengers there may be longer waits today at Passport Control due to the Border Force strikes.

Arrivals are advised to use e-gates if they hold an eligible biometric passport, and to remove hats, headphones and masks,

Passengers have been told to prepare for “significantly disrupted” travel into the new year amid the wave of industrial unrest sweeping across the country.

Network Rail issued the warning yesterday, as the series of long-running disputes over pay and working conditions grip the railways.

Updated

Introduction: Travel disruption to continue; Border Force and driving examiners strike too

Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.

UK commuters could face travel disruption as they return to the office following the Christmas break, as industrial action by rail workers continues.

Members of the Transport Salaried Staffs’ Association (TSSA) at Great Western Railway and at West Midlands Trains are holding a 24-hour strike from noon today.

West Midlands says its services will not operate today, or tomorrow, due to the TSSA industrial action.

Great Western expects to operate a significantly reduced level of service until Friday, warning that trains are expected to be very busy.

It has advised passengers to check their journeys before travelling, especially if travelling late at night, as some short-notice alterations or cancellations are likely.

There were chaotic scenes yesterday at some railway stations, with hundreds of passengers stuck in long queues at major stations on Tuesday and others facing lengthy delays due to overrunning engineering work.

One traveller spoke of “chaotic” scenes and another described fights breaking out as “masses” of people waited in the cold for rail replacement buses on the Avanti West Coast line between Manchester and London.

Here’s the full story:

TSSA members at CrossCountry held a strike from 9pm Boxing Day to 9pm last night.

The TSSA say the strikes at these three operators will cause severe impact on rail services expected, especially in the Midlands and South West.

Travellers arriving in the UK could face longer waits at passport control today. Border force staff at six UK airports are resuming their strike today, in a dispute over pay.

Around 1,000 members of the PCS union will walk out until New Year’s Day, at Heathrow, Gatwick, Manchester, Birmingham, Cardiff and Glasgow airports, and the port of Newhaven.

The UK border will remain open, with armed forces staff bein drafted in to help, but passport checks may take longer than usual.

This follows a Border Force strike before Christmas. Our home affairs editor Rajeev Syal revealed on Saturday that the soldiers and sailors covering for striking staff at passport control do not have the power to detain people they suspect of criminal activity

Leaked emails showed that people suspected of crimes such as carrying a false passport, drug smuggling, people trafficking and victims of modern slavery cannot be stopped by members of the armed forces if they hold valid travel documents.

Instead, a separate intervention has to be sought for suspected serious criminals or their victims from a fully trained Border Force officer.

Driving examiners are launching a five-day strike today, part of escalating industrial action by civil servants in a dispute over pay, jobs and pensions.

Members of the Public and Commercial Services union (PCS) in 71 test centres in eastern England and the Midlands will walk out.

They are employed by the Driver and Vehicles Standards Agency (DVSA) as driving examiners and local driving test managers.

The strike action may affect car driving tests, motorcycle tests, lorry, bus, coach and minibus driving tests, tractor or specialist vehicle driving tests, approved driving instructor (ADI) driving ability or instructional ability tests, or ADI standards checks, or basic training checks for moped and motorcycle users.

The agenda

  • Noon GMT: US weekly mortgage applications

  • 3pm GMT: US pending home sales for November

  • 3pm GMT: Richmond Fed manufacturing and services indices

Updated

 

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