Great British Railways: Industrial Action

Lord Hendy of Richmond Hill Excerpts

Tuesday 18th March 2025 Lords Chamber

[Lord Moylan]

To ask His Majesty’s Government what role Great British Railways will have in resolving industrial action on the railways.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, when Great British Railways takes over, it will be responsible for the industrial relations of the railway. Its establishment depends, of course, on the passage of the forthcoming railways Bill through Parliament. In the meantime, as each train operation comes into public ownership, the transfer of undertakings regulations will apply, and thus the existing negotiating arrangements will apply for these operators and, of course, for Network Rail. There is currently no new industrial action on the railway network except for a projected eight-week strike on Hull Trains, which is an open-access operator and therefore not the responsibility of the Government.

[Lord Moylan (Con)]

My Lords, we know from what we saw only a few months ago that, under the current departmental management, the Department for Transport is very good at giving out public money to ASLEF and the RMT without securing any improvements in working practices in exchange. Why will this be different when GBR is managing the railways? What additional tools will it have that will secure the improvement in working practices on the railways that all of us want to see?

[Lord Hendy of Richmond Hill (Lab)]

The answer to the noble Lord’s point is that it will have competent long-term management. The longest dispute in recent history on the national railway network was the one which was solved with an additional 2% pay offer last summer. That dispute lost an estimated £850 million-worth of revenue over the two years that it took place. Significantly, there were no productivity measures on the table at the time when the dispute was settled, simply because there had been a long-standing dispute between the employers—the owning groups of the train operating companies—and the department about the share of the revenue savings that they would get if productivity was applied. That meant that, in several train companies, there were no proposals whatever extant that could be implemented. Any sensible employer has in their mind the things that they need to do to make their operation more efficient and a negotiating strategy with their employees to achieve it. That was not the case last summer, but it will be the case in future.

[Baroness Pidgeon (LD)]

My Lords, what steps will Great British Railways take to minimise disruption to passengers during periods of industrial action? What compensation mechanisms will be put in place to ensure that passengers are not unfairly disadvantaged when their journeys are disrupted?

[Lord Hendy of Richmond Hill (Lab)]

The primary activity that needs to take place is good industrial relations, so that the instances of disputes that affect the train service are much reduced. A feature of good industrial relations is dialogue between the employees, their representatives and the employer, which is very much in the mind of the Government as we go forward with Great British Railways. In addition, as I have said to the House before, I want to see managers at route and train operating company level who can co-ordinate how the railway behaves and how it serves customers. By those means we will offer a better service and have less industrial action.

[Lord Barber of Ainsdale (Lab)]

My Lords, I welcome the focus that the Question from the noble Lord, Lord Moylan, has put on the negotiating arrangements in the railway sector. This was highlighted in the dispute that has been referred to before the general election, in which a point was reached where, after very intense and prolonged negotiations, a potential settlement had emerged that the negotiators were prepared to support from all sides. Unfortunately, that settlement was not approved because the Government Ministers decided to veto the possibility of that agreement being reached, bringing into serious concern the integrity of the whole process. Let me now turn—

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[Lord Barber of Ainsdale (Lab)]

Does he agree that it would be better at the same time to reset relations with the workforce and the trade unions?

[Lord Hendy of Richmond Hill (Lab)]

I agree with my noble friend, but I will add one point. The Government are responsible for the cost of the railways to the taxpayer and, because of that, Governments need to make clear before the commencement of negotiations what the envelope is for the employers to negotiate. It is most unhelpful for a Government to intervene part or nearly all of the way through.

[Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)]

My Lords, I remind all noble Lords that questions should consist of up to 100 words and no more than two points.

[Lord Young of Cookham (Con)]

My Lords, further to my noble friend’s Question, does the Minister recall a speech that he made on 27 April 2022, when he was chairman of Network Rail, to the Rail Industry Association? He said:

“The industry will not back away from its modernisation and cost reduction drive despite the threat of strike action”.


Does that remain his policy?

[Lord Hendy of Richmond Hill (Lab)]

I was wondering what I had said in April 2022. When I spoke to the Rail Industry Association, it was in respect of industrial relations in Network Rail, which I had the privilege to chair for nine years with 30,000-odd employees. What was very successfully concluded in the summer of 2023 was a ground-breaking deal with extensive productivity in a public sector corporation. It was not widely celebrated by the Government of the time because they did not welcome that progress, but it was very much in line with what I said in April 2022.

[Lord Katz (Lab)]

My Lords, I draw your Lordships’ attention to my register of interests. Does my noble friend not agree that the lamentable record of the previous Government when it comes to industrial relations on the railway demonstrates the need for an independent guiding mind in the form of GBR, which we will hopefully legislate for soon? Does it not demonstrate the need to have an organisation that can take the heat and the fire—and, I might say, in some cases, the ideological approach—out of industrial relations on the railway and set a positive, modern and long-term framework for workforce relations in that sector?

[Lord Hendy of Richmond Hill (Lab)]

Not only do I completely agree with my noble friend, but the noble Lord, Lord Moylan, might recall that, when he was deputy chair of Transport for London and I was the commissioner, we went to the ends of the earth to keep industrial relations matters away from the political leadership of the mayor and within the organisation. The right way of concluding both wages and conditions is for the employer to negotiate with the recognised trade unions of the employees, and political influence does not help much in those relationships.

[Baroness McIntosh of Pickering (Con)]

Can the Minister give the House an assurance that the weekend roster has been sorted, particularly for stations along the east coast main line route, and that the excuse that there is no crew available will not be used over weekends this summer?

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[Lord Hendy of Richmond Hill (Lab)]

So far as the long-distance operator on the east coast main line is concerned, I can very happily give that assurance: LNER is top of the performance league and is actually very popular with passengers—I hope it remains so. In respect of Northern, I just looked at it today. Northern was taken into public ownership in March 2020 because the previous owners had failed. At that time, it had a dispute about the role of the guard. That dispute was already running then and is still running after the remainder of its term of ownership under the previous Government. It is a very long-standing dispute that involves Sunday rostering, and we are working very hard to fix it. This Government inherited that dispute; it could have been resolved in any of the years from 2020 to 2024 if the Government at the time had so chosen.

[Baroness Deech (CB)]

My Lords, will GBR have a better plan than Network Rail for fixing the terrible damage done to Oxford by about four years of Network Rail cutting the city in two—with damage to the people, businesses and residents—or will the transition make things even worse and slower?

[Lord Hendy of Richmond Hill (Lab)]

I have apologised to the noble Baroness for the disruption at Botley Road bridge in Oxford already, and I am happy to do that again. What I am quite clear about is that the disruption caused by the bridge replacement and the associated difficulties of rebuilding the road will be finished before GBR comes into effect.