RAIL union RMT has entered into a formal dispute with Network Rail, citing years of real-terms wage cuts.

RMT said yesterday that cumulative RPI inflation has risen by 27 per cent since 2021, while pay awards have lagged behind at 17 per cent. 

The shortfall translates to real-terms losses of between £3,500 and £9,600 for each worker, depending on pay grade, the union said.

RMT argues Network Rail’s figures show that workers in maintenance and operations have “delivered more for less.”

It noted that the firm spent £3.9 billion on renewals in 2023/24, with staff delivering 108 per cent of the planned work in the first year of Control Period 7.

RMT general secretary Eddie Dempsey said: “Our members have enhanced the value of the railway, kept it running safely day and night and achieved rising levels of productivity.

“However, the value of their pay packets has fallen behind the cost of living and they want that addressed.

“Network Rail management need to make an offer that reflects the hard work, professionalism and productivity of staff across maintenance and operations.”

RMT says that money “continues to leak out of the railway” through outsourcing, with Network Rail squandering  £168 million on agency work last year.

Mr Dempsey added: “The money is there but is instead being wasted on outsourcing, agency costs and the inefficiencies created by years of privatisation.

“If we want to rebuild rail, make Great British Rail a success and revive Britain, we must start by valuing the people who make the railway run.”

A Network Rail spokesperson said: “We are surprised and disappointed by the RMT’s decision to declare a dispute before pay talks have even started.

“The anniversary date for the next pay review is not until 1 January, and we already have meetings scheduled for November with all three unions to discuss their proposals.

“We remain committed to constructive dialogue and are always willing to talk to our trade union colleagues.”