Dhe major rail strike, which is currently paralyzing half of Britain, is bringing back bad memories on the island of the chaos of the 1970s, when militant unions tried to impose their demands. The transport union RMT, whose general secretary speaks of “class warfare” and whose president is a member of the Communist Party, has considerable potential for blackmail. Now millions of commuters and travelers are stuck this week. The tourism and catering industry fear losses of up to a billion pounds.
The RMT Union is demanding 7 to 8 percent more wages, they want to keep the 35-hour week and prevent layoffs and rationalization. After the railways were supported by the state with 16 billion pounds in the Corona crisis, they urgently need to save. The industrial action could last for weeks. Other unions are already preparing for strikes. Teachers, nursing staff, garbage collectors, postmen and other professional groups are also demanding more money.
In view of rapid inflation, the desire for an inflation adjustment in order to avoid losses in real wages is only too understandable. The 3 percent increase in wages offered by the railway companies is not enough. However, wage and salary increases of more than 5 percent across the board would only set off a wage-price spiral and the central bank would have to hit the brakes all the more brutally with interest rate hikes. A recession would then be inevitable.
It will be interesting to see what political impact the strikes will have. The public is divided, many citizens are annoyed by militant unions. The opposition Labor Party wobbles around. Some shadow cabinet members support the RMT, others have distanced themselves.
The strikes are not without their dangers for Prime Minister Boris Johnson, but he could also benefit if the mood turns. Hardly anyone on the island wants a repeat of the stagflation of the 1970s with high inflation and sluggish economic growth.
