Railways: Pay

Department for Transport written question – answered on 12th November 2018.

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Photo of Andy McDonald Andy McDonald Shadow Secretary of State for Transport

To ask the Secretary of State for Transport, pursuant to the Answer of 19 October 2018 to Question 178322 on Train Operating Companies: Pay, whether he has asked the Rail Delivery Group to include executive pay in the development of a pay award system that uses CPI as the inflation measure for future pay deals.

Photo of Nusrat Ghani Nusrat Ghani Parliamentary Under-Secretary (Department for Transport), Assistant Whip (HM Treasury)

The rail industry has been shifting away from RPI over time and most rail industry costs now are not linked to RPI, with the primary exception of wages. The Secretary of State for Transport has asked the Rail Delivery Group (RDG) to develop an approach for how earnings growth for all employees could be more closely aligned with CPI, with the aim of ensuring that the railway is affordable for the fare paying and tax paying public. He has not made any reference to a ‘pay award system’ for any groups of staff.

Pay negotiations and the settlements reached by individual employers and trade unions remain a matter for local collective bargaining.

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