Shoppers at a grocery store in London, UK, March 20, 2020. /Reuters
Shoppers at a grocery store in London, UK, March 20, 2020. /Reuters
British public sector pay will not be able to keep up with soaring inflation, transport minister Mark Harper said on Sunday, as the country faces a wave of industrial disputes.
Industrial action is becoming more widespread across Britain's transport network. Last week, Britain's Royal College of Nursing trade union announced dates for its members' first strike in more than 100 years.
British consumer price inflation hit a 41-year high of 11.1 percent in October. However, the latest official wage data for July-September showed public sector pay rose by an annual 2.4 percent, while average private sector wages increased by 6.8 percent.
"I think inflation-matching and inflation-busting pay rises are unaffordable," Harper said.
"We want to try and give all the workers in the public sector who work very hard decent pay rises. But they can't be inflation-busting pay rises. There isn't the money to pay for those. We haven't seen those in the private sector either," Harper told Sky News.
Finance minister Jeremy Hunt said state pensions and most benefits would rise in line with inflation in a budget statement on November 17, but announced a longer-term plan for 55 billion pounds ($67 billion) a year of spending cuts and tax rises.
These plans leave little room for government ministers to approve major pay rises.
Harper said a meeting last week with the heads of Britain's National Union of Rail, Maritime and Transport Workers (RMT) and Transport Salaried Staffs' Association (TSSA) had been productive.
Transport unions have said Britain's government – which heavily subsidizes rail operators – has effectively blocked rail companies from reaching a pay deal with workers.
Harper said he wanted changes to employment practices in the rail sector – where Sunday working is optional – before agreeing to more public funding.
(Source: Reuters with edit)