Businesses have urged unions to consider the “far-reaching consequences” of rail strikes as the hospitality sector warned over a hit of up to £350 million from the latest walkouts.
The Night Time Industries Association (NITA) warned it was “deeply concerned” about the “significant repercussions” that recent industrial action – organised by the train drivers’ union Aslef – will have on the night-time business economy.
The advocacy group representing night-time businesses said strikes over the past few years have already caused firms to lose more than £4 billion in revenue, which has worsened the effects of rising inflation and led to a “significant” increase in hospitality businesses falling into administration.
It has urged the Prime Minister Rishi Sunak and Chancellor Jeremy Hunt to take “decisive action” to remedy the “critical situation”.
Trade association UKHospitality estimates that the current train strikes will cost the sector up to another £350 million, which comes as swathes of firms in the industry are already being forced to close their doors.
In 2023, 1,641 companies went into administration, with 190 of those from the hospitality sector.
This marks a 22% increase compared to the previous year and a 91% rise compared to 2021.
Members of Aslef on some of the busiest commuter routes, including many into London, walked out on Tuesday, crippling services on operators such as Southern, SouthEastern, Gatwick Express and South Western Railway.
Solidarity with our members taking strike action today on Northern and Transpennine Trains. pic.twitter.com/VcDXrJGBL6
— ASLEF (@ASLEFunion) January 31, 2024
Train drivers from Northern Trains and TransPennine Express again went on strike on Wednesday as part of a rolling action plan that will continue into next week.
The Rail, Maritime and Transport union (RMT) has also announced two 48-hour strikes by London Overground workers over the next two months in a separate dispute over pay.
NITA chief executive Michael Kill said: “Our industry is on the brink of collapse, with billions of lost revenue, increased taxes, and the devastating closure of numerous businesses.
“This has not only impacted livelihoods but has also led to a decline in the vibrancy of cities and towns nationwide.
“I urge the Chancellor and the Prime Minister to acknowledge the critical situation unfolding before them and take decisive action.”
Kate Nicholls, chief executive of UKHospitality, told the PA news agency: “Once again, hospitality businesses are left dismayed by strike action which will be significantly detrimental to sales and see bookings cancelled.
“January and February are already two of the quieter months of the year for venues and this disruption will make it even more painful.
“We continue to urge all parties involved to urgently reach an agreement and resolve the dispute.”
The NITA acknowledged that strikes are a lawful means for workers to express their concerns, but encouraged Aslef to consider the consequences of their actions.
“NTIA encourages the Aslef union to consider the far-reaching consequences of their actions and seek solutions that will safeguard both the welfare of their members and the viability of local businesses,” the NITA said.
Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), told the PA news agency the strike action would cost pubs “tens of millions”.
She said: “After more than a year of frequent train strikes on the national rail network and on the London Underground, these continuing strikes are a serious blow for pubs across the country, during the toughest period of the year for trading.
“There is absolutely a financial cost to the country’s pubs, who operate on narrow margins and need all the footfall they can get, especially in January.”
MRI Software, a real estate software company, has reported a 20.1% plunge in footfall across UK retail destinations from December to January, and said the retail sector will “face challenges” due to planned rail strikes.
Jenni Matthews, marketing and insights director at MRI Software, said: “While the post-Christmas slump is evident in January’s footfall figures, the retail sector and businesses reliant on visitors travelling in by train are set to face challenges in the first half of February due to an unprecedented number of planned rail strikes.”
A spokesperson for Aslef said: “Taking strike action is always a last resort.
“But this is a failure of management, a failure of the train companies, and a failure of this government, which has overseen a staggering hike in prices over those five years.
“The solution is simple – persuade the companies to come back to the table and negotiate with us.”
A Government spokesman said: “We have done deals to end strike action with the RMT, TSSA and Unite unions, but Aslef continue to go on strike despite having an offer on the table that would increase a train driver’s salary to £65,000 – which they still refuse to put to their members.
“We recognise the challenges industrial action poses for the hospitality sector, which is why we recently extended measures to support pubs and hospitality, including a 75% discount on business rates and freezing alcohol duty until August 2024.”