PAY OFFER REJECTED, BUT STRIKE POSTPONED

Thursday 29 Jun 2006

PAY OFFER REJECTED, BUT STRIKE POSTPONED

Region & Route:: National

Network Rail was today disappointed to learn the result of a referendum of operational staff who are members of the RMT trade union, which showed that employees had voted by a small margin to reject a pay deal that the union negotiated two weeks ago. Network Rail has now agreed with the RMT that the union can extend its mandate for industrial action until 24 July, allowing more time for negotiation to settle the dispute without a strike. Responding to the referendum result, Network Rail’s Chief Executive, John Armitt, said: “We are very disappointed by this rejection of the pay deal – our fourth compromise offer – which we believe is a generous one. We are particularly disappointed that this result means the threat of strike action continues to hang over the heads of passengers, our people and the rail industry as a whole. “We have set a date for talks with the RMT and we will do all we can to find a realistic solution and avert a strike that would cause disruption for millions of people and damage the reputation of the rail industry. But, while the threat of strike action remains live, we will continue to make robust contingency plans that will allow us to run some services the event of a strike.”

Notes to editors

The pay offer – Network Rail’s fourth compromise offer – was negotiated with the RMT’s executive on 14 June But, following a meeting between the executive and the union’s representatives within Network Rail on 22 June, the executive ceased to support the deal and called a referendum recommending that RMT members vote to reject it 2,688 RMT members voted in the referendum out of a possible 4,800 – a turnout of 56% Of those who voted, 1,496 (55.7%) voted to reject the offer and 1,190 (44.3%) voted to accept it The deal includes; A rise of 3.2% in year 1 A rise of RPI + 0.75% in year 2 An earlier introduction of the 35-hour working week half-way through year one A significant increase in travel subsides An increase in London allowances

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