TfL bosses say Tube staff pay rise will worsen financial crisis
Transport for London (TfL) bosses have warned that the body’s financial situation will worsen following the eight per cent pay rise awarded to 16,500 Tube staff.
The deal, which sees employees being entitled to the RPI rate of inflation plus 0.2 per cent, will cost TfL an additional £100m and lead to further cuts to services, the Evening Standard reported.
“We will shortly be entering the fourth year of the pay agreement covering staff on London Underground contracts,” a TfL spokesperson told the outlet. “This binding agreement was made before anyone could have predicted the pandemic’s effects on our finances or the 30 year high inflationary levels that we are now experiencing.
“As per the agreement, the amount of the pay increase for 2022/23 will be based on the RPI figure for February, which will be published in March.”
The rise comes at a delicate time for TfL, as the latest round of government funding is set to expire today. Just yesterday Khan said he was “hopeful, but not confident” of securing a long-term deal, City PM reported.
The mayor’s attitude resembled that of TfL commissioner Andy Byford, who told City PM last week that TfL managers “are really trying” to secure government backing until 2023/2024 and avoid a £1.5bn financial black hole.
“We are very focused along with the government to try and get a long-term capital deal and operating support to take us through 2023 and 2024 by which point we said we will be financially self-sufficient,” he said. “Will we get that? I don’t know but we are really trying.”