Small businesses latest casualty of union rail strike chaos

Complete shutdowns cost the state $97 million per day according to research from Business NSW. It is a staggering figure and behind every statistic is stress, anxiety and pain.

The havoc being wreaked on Sydney by the Rail, Tram, and Bus Union is bringing immense costs to small businesses already under intense pressure.

Failure to curb this economic vandalism will only push further small firms to the wall at a time we can least afford it.

The latest data from ASIC revealed that insolvency levels are at decade-highs. In the month of November 2024 alone over 1,400 businesses went insolvent amidst rising energy, rent and insurance costs. More than a quarter of small business owners not paying themselves a salary.

Creditor Watch predicts things will get harder before they get easier with the business exit rate expected to creep towards 6 per cent this year.

Amidst this backdrop, the last thing our small businesses need is lost trade, disruption, and crippling uncertainty.

When our small businesses suffer, we all suffer.

RTBU NSW Secretary Toby Warnes and delegates leave the Fair Work Commission on Christmas Eve after an application to suspend or terminate rail union strikes. Picture: NewsWire / Nikki Short

The key to curbing inflation is to promote productivity, competition and small business success. If we see fewer small businesses and reduced competition, we will be stuck with higher prices and interest rates for longer. Small businesses are also the largest private sector employer in NSW.

The train strikes are bringing disproportionate costs to mum-and-dad small businesses. Small business owners wear a range of ‘hats’: they are the head of marketing, the head of sales, the head of HR, head of legal and more.

Small businesses in Sydney are hard hit by train disruptions. Picture: NCA NewsWire / Nikki Short

When external shocks such as a train disruption occurs it is the small business owner themself left to grasp the logistical challenges, inform customers and wear the direct and indirect costs. Small business owners simply can’t “phone in sick” when the going gets tough.

Some cafés are already reporting losses up to $10,000 in just two days with many owners digging further into their own pocket to fund Uber trips for their staff to get to work.

A cleaning business reported that a mandatory training day needed to be cancelled due to the disruption, deferring its ability to comply with relevant OHS legislation.

It is not only the Sydney CBD being affected but other hubs such as Parramatta, Penrith and North Sydney are reporting reduced foot traffic.

Complete shutdowns cost the state $97 million per day according to research from Business NSW.

It is a staggering figure and behind every statistic is stress, anxiety and pain for a real mum-and-dad business. Small business owners have often mortgaged their house to fund and operate their business. Many mum-and-dad businesses simply do not have the reserves to simply enact contingency plans or to absorb lost trade.

Quick and decisive action must be taken to end this disruption. Small businesses have already endured lost trade, disruption and face lingering uncertainty until this matter is resolved. Many consumers are cancelling or postponing their bookings be it for restaurants, cinemas, haircuts and even health consultations.

Whilst the RTBU is entitled to represent its members, it remains an open question how many of its rank-and-file members support small businesses being pushed further to the wall. There is a huge irony in the RTBU invoking the ‘cost of living’ in its arguments when its own actions are directly hurting the hip-pocket of small business owners across our city.

For many small business owners in Sydney who had hoped 2025 would start with greenshoots that optimism has been dashed early. Small businesses are resilient people – having endured COVID and rising costs – but there is fear ongoing disruption will be the straw that breaks the camel’s back for many.

The actions of the RTBU appear to have backfired with community sentiment firmly against ongoing disruption. Disruption needs to end and there must be an honest conversation about the true costs this action is having on the backbone of our economy.

Failure to do so will only see more small businesses suffer and sustained damage to the very city our train network is meant to serve.

Luke Achterstraat is CEO of the Council of Small Business Organisations Australia