In recent months, Britain’s largest rail union, the Rail, Maritime and Transport Union (RMT), along with the train drivers' union Aslef, has continued to announce strikes, with significant industrial action taking place throughout the years and into early 2025. These strikes have caused widespread disruption to the UK’s critical supply chains, as well as the hospitality and retail sectors.
The ongoing disputes stem from long-standing tensions over pay, working conditions, and job security, with rail workers pushing for wage increases in line with inflation and opposing proposed changes to staffing and operations.
Understanding the Cause of Britain's Rail Strikes
With inflation peaking at over 11% in late 2022 and remaining a concern in subsequent years, the RMT and Aslef unions have continued to argue that the pay rises offered by train operators—often as low as 4%—are insufficient. Unions have consistently pushed for wage increases closer to inflation levels, due to the ongoing cost-of-living crisis affecting workers across the UK (Reuters).
Effect of Rail Strikes on the UK supply chain and Hospitality Sector
The ongoing national rail strikes continue to put significant strain on the UK’s already fragile supply chain, which has been grappling with persistent wage inflation, labour shortages, and logistical disruptions over the past few years.
With construction workers and other key industry professionals relying more on road travel due to rail disruptions, traffic congestion on major transport routes has worsened, leading to longer commute times and delays across the country.
With HGV drivers relying on the UK’s roads to supply the country with essential goods, delays are having a colossal impact on the industry’s ability to function. The number of daily deliveries that can be completed by drivers are being significantly decreased and with a lack of goods reaching depots and factories across the UK; petrol stations, supermarkets and other marketplaces are being left at risk.
Although contingency plans allow construction companies to prepare for the further impacts of the strikes which are yet to come, Maggie Simpson, head of the Rail Freight Group, suggested that regardless of the measures, the strikes will place “extra risk into already fragile supply chains” (Financial Times). This comes as Britain’s fundamental supply chains risk reaching a chaos, with the rail strikes expected to continue over the coming years.
The hospitality industry has suffered substantial losses due to ongoing industrial action. In December 2024 alone, rail strikes cost the UK hospitality sector £1.5 billion, with bars, pubs, restaurants, and hotels experiencing significant downturns during peak seasons (Business Matters).
Future outlook: preventing Supply Chain issues amid Rail Strikes
With rail staff continuing to strike in the fight for better pay, union leaders have warned that we should expect industrial action to echo across into other industries in the coming years, should the government fail to raise pay rates.
To avoid further damage to the UK’s supply chain, the government would need to come to an agreement with rail companies on pay and pension cuts, or else face a renewal of the mandate for years to come.
