‘Too far apart’: Rail dispute negotiations falter despite consensus on pay

Rail unions and the Minns government have failed to reach a breakthrough on a new wage deal despite initial consensus on an annual pay rise of about 4 per cent for thousands of rail workers.

The government will now press ahead with its legal bid for industrial action by rail unions to be terminated or suspended on economic harm and safety grounds. A full bench of Fair Work is due to start hearing the case on Wednesday.

Emerging from more than four hours at the Fair Work Commission on Tuesday, Transport for NSW secretary Josh Murray said no agreement could be reached because the two sides “remain too far apart”.

Thousands of train services were cancelled or delayed last Wednesday and Thursday due to industrial action. Credit: Wolter Peeters

“There’s been no breakthrough. We will continue to prepare for the important hearing [on Wednesday],” he said.

Rail Tram and Bus Union (RTBU) state secretary Toby Warnes said the government “just walked away from the table” on Tuesday afternoon, although he held some hope further talks could be held overnight.

The main stumbling block during a second day of closed hearings before Fair Work was a risk-assessment clause that the government wants removed.

The previous Coalition government agreed to insert the clause in the last enterprise agreement after a protracted dispute in 2022 over the state’s new intercity train fleet. The clause requires transport authorities to consult unions on risk assessments for new train fleets or major changes to rail infrastructure.

“Unfortunately, the government came with a position that was further away,” Warnes said, citing its desire to remove the risk-assessment clause, as well as to insert another related to new technology.

Warnes said the union was still open to talking overnight and that he would reach out to the government. “I’m not writing off the possibility that [a breakthrough] might happen before the hearing tomorrow, but it’s going to take will on both sides,” he said.

Earlier, the Herald revealed that the unions’ counter-offer to the government in the bitter dispute was for a pay rise of 11 per cent over three years – less than half what they were seeking when negotiations kicked off eight months ago.

Rail Tram and Bus Union state secretary Toby Warnes.Credit: Louie Douvis

In their counter-offer, the unions were seeking a 4 per cent pay increase in the first year and 3.5 per cent in each of the following two years. It contrasted with the unions’ opening gambit last year for a 32 per cent pay rise over four years.

It also included a package of over 100 conditions, which range from harmonisation of allowances for electrical and maintenance workers to improved redundancy provisions.

Last week, the government revealed that it was offering rail workers a 4 per cent pay rise in the first year, followed by 3.5 per cent in both the second and third years and 3 per cent in the fourth.

The government offer of a 14 per cent pay rise over four years included a 1 per cent increase from savings from the merger of Sydney Trains and NSW Trains.

A spokesperson for Transport Minister Jo Haylen said the government stayed at the table throughout the conciliation hearing overseen by the Fair Work Commission.

“The commissioner ended the hearing and farewelled the government’s representatives after the unions failed to accept the government’s offer,” he said.

“The government has put a reasonable package in response to the combined rail unions. That package has not been accepted but remains available.”

After two days of chaos on Sydney’s rail network last week, interim orders halting industrial action were placed on unions last Thursday, pending the full hearing into whether work bans were damaging the economy.

Last Friday, Haylen conceded that the “threshold is high” to convince Fair Work to intervene, but the government was preparing evidence to bolster its case of the “incalculable” hit to the economy and community harm from the industrial action.

Warnes said the dispute would go to arbitration if Fair Work decides to terminate industrial action.

“If it’s suspended, then it just means we can’t take industrial action for that period of time, and we go back to negotiations after that,” he said.

About 60 per cent of Sydney Trains and NSW Trains’ 13,300 workers are RTBU members. The Electrical Trades Union, which is one of the six involved in the dispute, represents about 940 workers at the state-owned rail operators.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.