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Businesses have urged unions to consider the “far-reaching implications” of rail strikes, with the hospitality industry warning that the latest strike has cost as much as £350m.
The Night-Time Industry Association (NTIA) has warned that it is “deeply concerned” that recent strike action organized by train drivers’ union Aslef will have a “significant impact” on the night-time business economy.
An advocacy group representing night-time businesses said strikes over the past few years have cost businesses more than £4bn in lost revenue, exacerbating the impact of rising inflation and causing a “significant” increase in the struggling hospitality sector. administrative.
It urged Chancellor Rishi Sunak and Chancellor Jeremy Hunt to take “decisive action” to reverse the “critical situation”.
The British Hospitality Association estimates that the current train strike will cost the industry up to a further £350 million, while a large number of companies in the industry have already been forced to close.
In 2023, 1,641 companies entered administration, 190 of which were from the hotel industry.
This is a 22% increase from the previous year and a 91% increase from 2021.
Aslef members on some of the busiest commuter routes, including many into London, went on strike on Tuesday, crippling services for operators including Southern Rail, South Eastern Rail, Gatwick Express and South Western Rail.
Northern Trains and Pennine Express train drivers went on strike again on Wednesday as part of a rolling action plan that will run until next week.
The Rail, Maritime and Transport Union (RMT) also announced that London Overground workers will hold two 48-hour strikes over the next two months to resolve another pay dispute.
“Our industry is on the verge of collapse, with billions of dollars in lost revenue, increased taxes and massive business closures,” said NTIA CEO Michael Kill.
“This not only affects livelihoods, but also leads to a decrease in the vitality of cities and towns across the country.
“I urge the chancellor and prime minister to acknowledge the serious situation they face and take decisive action.”
Kate Nicholls, chief executive of UKHospitality, told the PA news agency: “Strike action has once again frustrated hotel businesses and will severely damage sales and lead to cancellations.
“January and February are already the quietest two months of the year for venues and this disruption will make the situation even more painful.
“We continue to urge all parties involved to urgently reach an agreement and resolve the dispute.”
NITA recognizes that strikes are a legitimate means for workers to express concerns, but encourages Aslef to consider the consequences of his actions.
“NTIA encourages the Aslef union to consider the far-reaching implications of its actions and seek solutions to safeguard the welfare of its members and the viability of local businesses,” NITA said.
Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), told the PA news agency that strike action would cost pubs “tens of millions of dollars”.
She said: “There have been frequent train strikes on the National Rail network and London Underground for more than a year, and these ongoing strikes are a serious blow to pubs across the country at one of the toughest times of the year for business.
“There will absolutely be a financial cost to the country’s pubs as they operate on razor-thin margins and need as much footfall as possible, especially in January.”
Real estate software company MRI Software reported that footfall at UK retail destinations plunged 20.1% from December to January and said the retail sector would be “challenged” due to planned rail strikes.
Jenni Matthews, director of marketing and insights at MRI Software, said: “While January’s footfall figures clearly point to a post-Christmas slump, retail and businesses that rely on train travel will face challenges in the first half of February. Challenges due to unprecedented number of planned rail strikes.”
A spokesman for Aslev said: “Strike action is always a last resort.
“But it’s a failure of management, a failure of the train companies and a failure of the government, which has overseen a staggering rise in prices over five years.
“The solution is simple – convince these companies to come back to the table and negotiate with us.”
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