Empowering the Freelance Economy

End of rail strikes? Not so fast

The end of rail strikes will save the economy, small businesses and freelancers lost earning capabilities.
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Based on the report “Rail union make wild holiday demand after Labour caved on pay deal” (msn.com), the RMT union is escalating its demands following Labour’s acceptance of a pay deal last week. The union is now seeking a significant increase in annual leave, potentially from 28 to 35 days, while also demanding a reduction in the working week. This move comes after the RMT secured a 9% pay rise over two years. The report also notes that further disruptions to rail services are likely as the union plans new strike ballots.

The Freelance Informer previously reports that in a significant development that could bring relief to many across the UK, the government has announced a breakthrough in its negotiations with the ASLEF (Associated Society of Locomotive Engineers and Firemen) union. ASLEF agreed to recommend a new pay proposal to its members, marking a potential end to the ongoing rail strikes that have plagued the country for over two years.

The cat is still in the bag as to how these salary hikes will be funded and if it could mean higher ticket prices. Train drivers will have a salary of just under £70,000 under the new negotiations.

The Labour Party does have a vision of nationalising rail over the next five years, but that does not mean cheaper ticket prices, but rather better service in terms of getting your money back after cancellations or getting price guarantees.

What’s in the Deal?

The new offer includes a staggered pay increase for train drivers: 5% for 2022/23, 4.75% for 2023/24, and 4.5% for 2024/25. This proposal will now go to a referendum among ASLEF members. If accepted, it could signal the end of two years of industrial action that has caused widespread disruption, particularly affecting freelancers, contractors, and temp workers who rely on the rail network for their livelihoods.

Impact on Freelancers and the Gig Economy

For the UK’s freelance and gig economy, the prolonged rail strikes have been more than just an inconvenience—they’ve been a significant barrier to earning a living. With train services frequently disrupted, many self-employed workers have faced challenges in meeting clients, attending gigs, or even just commuting to temporary jobs. The lack of reliable transport options has forced many to absorb extra costs or miss out on opportunities altogether.

The Secretary of State for Transport, Louise Haigh, emphasized that the resolution of this dispute is about “putting passengers first.” For freelancers and contractors, this sentiment cannot come soon enough. Reliable and consistent rail services are critical to maintaining a flexible work schedule, allowing them to take on last-minute jobs or travel across the country without the fear of cancellations and delays.

Economic Ripple Effects

The rail strikes haven’t just hurt individual workers; they’ve had a broader economic impact. The government estimates that strikes since June 2022 have cost the railway industry around £850 million in lost revenue, with the total impact likely exceeding £1 billion when accounting for disruptions to work and spending in the hospitality and retail sectors. For temp workers and contractors, who often work in these industries, the knock-on effects have been palpable.

From a missed event in the city due to cancelled trains to the inability to meet with clients outside of one’s immediate area, the strikes have curtailed earning potential.

A Hopeful Outlook

The potential resolution of this dispute is a welcome development, especially for those in the flexible workforce who have had to navigate the uncertainties of the past two years. If ASLEF members accept the proposed pay deal, it would not only restore stability to the rail network but also remove a significant obstacle for freelancers, contractors, and temp workers across the UK.

Louise Haigh stated, “When I took this job, I said I wanted to move fast and fix things – starting by bringing an end to rail strikes. Finally today, the end is in sight.” For the many self-employed workers who depend on a reliable rail service, this could mark the beginning of a more stable and prosperous period.

As the referendum looms, freelancers and contractors will be watching closely, hopeful that this deal brings an end to the long-running disruption and ushers in a new era of reliability on the UK’s railways.

1 Comment
  1. Joe says

    For those people who’s work requires them to execute ‘in person’, this must be a glimmer of hope. Fingers crossed.
    But many freelancers, and employees for that matter, have switched to using technology to engage and deliver remotely, ever since the Covid lockdowns.

    The figure of £1 billion disruption to the hospitality sector quoted…..does that ‘disruption’ mean ‘lost’ or just ‘re-distributed’ to the regions? For those who advocate a levelling-up agenda, a re-distribution of spending out of London, Manchester,Birmingham etc. to smaller towns would be welcome, right? I know our local coffee shop has gone from strength-to-strength since Covid and although the chain-coffee-shop at the station may well suffer during train strikes, our local coffee shop has benefitted. These days, it even serves evening meals! They have become a restaurant!

    Business (not just in Britain) still involves transporting large numbers of people to a central place to get work done….. still harking back to the Industrial Revolution, ‘sucking in labour from the countryside to be put to work in factories’. Much like the Luddites of the 18/19th century, interested parties resist the move to allowing ‘working from home/anywhere’. Granted, businesses that ‘manuafactures’ something often need a physical human presence (though automation aims to minimise the number of humans required on site) and few people would argue that in any sector, there are not benefits to bringing talent together face-to-face, human-to-human …. but our modern information based economy often doesn’t require physical presence for day-to-day work.

    The railways in Britian helped facilitate a succesful Industrial Revolution – moving material to factories, goods to markets, and, in time, people (forced to live further and further away from the factory gate) to labour in those factories.
    Back in the 18th and 19th centuries.

    Modern technology is the ‘railways’ of the 21st century……..

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