Skip to content
Tuesday 11 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,863.82
+0.01%
DAX
26,461.97
+0.52%
CAC 40
8,740.19
+0.16%
STOXX 50
6,570.20
+0.53%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Wednesday 18 January 2023 3:15 pm  |  Updated:  Wednesday 18 January 2023 3:16 pm

Settling rail dispute would have been cheaper than strikes, admits minister

By: Ilaria Grasso Macola

Add as a preferred source on Google
Rail minister Huw Merriman is set to hold the latest round of talks with the union RMT and train operators after this week’s strike brought the UK to a standstill. 
Rail minister Huw Merriman has admitted the government has lost more money due to the rail strikes’ impact than it would have if it had settled the dispute with unions months ago.(Photo by Jack Taylor/Getty Images)

Rail minister Huw Merriman has admitted the government has lost more money due to the rail strikes’ impact than it would have if it had settled the dispute with unions months ago.

“It’s actually ended up costing more than it would have if [the dispute] had been settled,” the minister told members of the Commons’ transport select committee today. 

According to government estimates, each day of industrial action costs between £15m and £25m, depending on whether the strike takes place on a weekend or week day. 

This means that the strikes have cost the wider economy more than £1bn over the past eight months.

Nevertheless, Merriman maintained that the Department for Transport had to take into account “other government pay deals across the public sector”.

“We have to look around and we have to look at what teachers are being given, what nurses are being given as well,” the minister added. 

“And that’s why No10 is rightly involved in these discussions.”

Commenting on Merriman’s remarks, Frank Ward, interim general secretary of the union TSSA, said the minister had exposed “the disastrous short-termism at the heart of the government’s thinking about the rail dispute”.

“This is a shocking admission – that the actions of this wrong-headed Tory government have ended up costing the tax paying public over £1bn at a time when that money could have been used to fix this dispute and build up our railways after Covid,” he said.

Read more

Andy Burnham should show London he cares by funding this one transport project

Andy Burnham, Mayor of Greater Manchester, standing outside 10 Downing Street in a suit and tie.

The TSSA – which represents platform and signalling staff – is currently in talks with train companies over a revised pay deal, after agreeing to a nine per cent pay increase from Network Rail in mid-December.

Unlike the unions RMT and Aslef, whose members will down tools on 1 and 3 February, TSSA leaders haven’t announced a new strike date yet.

Ward’s comments were echoed by RMT’s general secretary Mick Lynch, who wrote a letter to business leaders impacted by the strike action.

Lynch told the likes of UKHospitality and the British Retail Consortium that they were used as “collateral damage”.

“In this dispute, the interests of businesses, rail workers and passengers have been sacrificed to a wider public sector pay agenda,” he said.

“I am sure you will want to write to the minister making the strongest representations about this issue.”

According to Merriman, the government had not interfered “in a negative manner” during negotiations. 

“We’ve been able to refresh mandates and that has led to settlement with the TSSA and Unite,” the minister told MPs. 

“There are talks going on this morning between the Rail Delivery Group and the RMT, and there have been talks going on last week and into this week with the RMT and Network Rail. So, I’m really hopeful that those talks will lead to a settlement.”

Read more

Get ready for new energy minister Miatta Fahnbulleh’s war on London’s drivers

Miatta Fahnbulleh, director of New Economics Foundation, smiling and holding red documents, wearing a black blazer.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Transport & Infrastructure

Related Topics

  • Railways
  • Strikes

Trending Articles

  • Five-star Mayfair hotel hit with HMRC winding-up petition

  • Nottingham Forest owner Marinakis sues Crystal Palace for defamation

  • Back to basics: Sainsbury’s gradual retreat from the British high street

  • Hargreaves Lansdown orders staff back to office

  • As it happened: Intel, Arm shares slide; Oil climbs higher

More from Morning Wire

  • Andy Burnham should show London he cares by funding this one transport project

    Opinion
    Andy Burnham, Mayor of Greater Manchester, standing outside 10 Downing Street in a suit and tie.
  • Get ready for new energy minister Miatta Fahnbulleh’s war on London’s drivers

    Opinion
    Miatta Fahnbulleh, director of New Economics Foundation, smiling and holding red documents, wearing a black blazer.
  • As it happened: Stocks drop on Trump-Iran warning; Mahmood tipped to be chancellor

    Markets
    Donald Trump speaking at a press conference podium with an American flag backdrop, emphasizing political discourse
  • Heathrow overtaken by Istanbul as Europe’s busiest airport

    Transport & Infrastructure
    Commercial airplane landing at Heathrow Airport, seen from behind, with a prominent Heathrow sign below.
  • As it happened: Stocks jump as oil drops; Unilever shares soar on decade-best sales

    Markets
    Unilever owns brands ranging from Ben and Jerry's to Dove
  • Manchester was Burnham’s rehearsal – now get ready to pay the bill

    Opinion
    Manchester skyline with iconic landmarks during a Belfast speech event, highlighting urban landscape and architectural bea...
  • Strait of Hormuz ‘closed’ as Iran and US exchange strikes

    Economics
    Bustling shipping activity in the Strait of Hormuz with tankers and cargo ships navigating Iranian waters.
  • Trump warns Iran: ‘We’re going to beat the f***ing s*** out of them’

    Politics
    Donald Trump speaking at press conference podium, addressing media with serious expression, American flags in background
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook