Rail Unions Slash Pay Demands By More Than Half Ahead of Fair Work Hearing

Unions representing railway workers have slashed their demand for increased pay by more than half in a counter-offer handed to the government. A Fair Work Commission hearing on the long-running dispute between rail unions and government is set for Wednesday (22 January, 2025).

Senior officials received the offer on Monday (January 20), with the Rail, Tram and Bus Union (RTBU), the Electrical Trades Union (ETU) and four other involved unions now requesting a pay rise of 11 percent over three years for the state’s rail employees – far less than the 32 percent increase over four years they have sought for eight months.

That government long rejected that demand, saying it was unaffordable.

The unions’ offer also includes a long list of lesser demands, concerning matters such as redundancy provisions, the Herald reported after seeing the leaked counter-offer on Tuesday (January 21).

Pay increase demands from rail unions close to government offer

In absolute terms, the unions’ demand is now less than the pay rise being offered by the government, which proposed a pay increase of 14 percent over four years, including a four percent pay increase this year.

Part of the pay increase would be funded by merging the metropolitan and regional rail operators, a proposal which has prompted concerns that country services would be neglected.

Beyond pay, other elements of the enterprise agreement remain to be hashed out, notably a clause requiring authorities to consult unions when assessing risks associated with new rolling stock or major infrastructure upgrades.

Optimism from government and rail unions

Nonetheless, embattled RTBU New South Wales secretary Toby Warnes was optimistic heading into negotiations on Tuesday that a resolution was close at hand.

“The sticking point is going to be the clauses that they’re asking us to remove from the enterprise agreement. We told them yesterday that they’re die-in-a-ditch stuff for us. We’re hoping they come back with another proposal today,” Warnes told reporters.

Transport for NSW secretary Josh Murray was also upbeat, saying there was a “good tone in the room” during discussions on Monday.

“Everyone brought their best approach to try to work out the elements that keep us apart. This is about detail, and it is about ensuring that both sides understand where each other is on some critical points,” Murray said.

Sydney plagued by delays and cancelled trains due to prolonged industrial action

Sydneysiders have had their patience exhausted following major disruptions last week caused by industrial action, deferred maintenance and severe weather.

The Fair Work Commission subsequently ordered industrial action to be halted until a hearing on Wednesday 22 January as the government sought a cessation of union action.

Premier Chris Minns on Thursday last week said the unions had “put a noose around the public transport system while demanding more and more and more money” from the government.

On Tuesday this week, Warnes was hopeful that the hearing could be pushed back as negotiations continued.

“We’d be hopeful that we could come to an agreement before the hearing starts tomorrow,” Warnes said.