UK business group warns of “incredible” damage caused by railroad strikes

A group of British companies have warned that ongoing rail strikes will cause “incredible” damage to the UK economy as companies prepare for serious turmoil.

The Railroad, Maritime and Transport Workers’ Union (RMT) has begun three days of industrial activity nationwide. He said he wanted to “close” the country’s rail network, which is what the union leaders call “the biggest railroad strike in modern history.”

Economists at the Center for Economics and Business Research (CEBR) have warned that the strike will cost the UK economy at least £ 91 million ($ 112 million).

The London Chamber of Commerce warned that the capital “cannot afford summer turmoil on rail and subway lines.”

The group’s chief executive officer, Richard Burgi, called the strike “damaging” and expressed concern about the possibility that “this controversy will continue all year round and there will be multiple strikes in the future.”

“A week lost every month for a foreseeable future will do incredible short-term and long-term damage to the economy and Britain’s reputation as an attractive investment destination,” he said. ..

UK Hospitality CEO Kate Nicholls warned that railroad strikes could cost the hospitality sector up to £ 540m ($ 664m).

She states: “Vulnerable consumer confidence is further hurt and prevented thousands of people who are willing to spend money at hospitality facilities across the country to do so.

She called for “urgent and productive discussions” to avoid further confusion.

Meanwhile, railroad strikes “damage” the retail sector, as strikes limit commuter and customer traffic, said James Hardiman, senior analyst at the British Retail Consortium (BRC).

“The UK’s footsteps have already fallen to pre-pandemic levels, which only slows down the progress retailers have made to bring people back to stores,” he said.

Prime Minister Boris Johnson said in a cabinet meeting Tuesday morning that the strike was “very wrong and unnecessary” and “caused serious turmoil and inconvenience above and below the country.”

It “made it harder for people to get a job, endangered people’s promises, and made it harder for children to take exams-unnecessary deterioration of all sorts,” he said.

Johnson called on the “Baron of the Union” to return to the negotiating table and resume negotiations with Network Rail and the railroad companies.

However, the main opposition Labor Party has accused the government of “interfering” with negotiations between the union and the railroad operator by refusing to participate.

PA Media contributed to this report.

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