Disruption is now an unfortunate fact of life for users of the UK’s rail network. In addition to staff shortages, rising costs, and failing infrastructure, worker strikes have been going on for nearly a year and a half – with no end in sight.
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
- North American expansion
- Net cash position
- Limited competition
- Potential operational gearing
Bear points
- Ongoing strike headwinds
- Premium rating
In late November, members of the RMT union agreed to a backdated pay offer of 5 per cent, meaning their mandate to strike was withdrawn. This guarantees the union’s members will not pursue further industrial action – at least for a few months. Meanwhile, members of Aslef, the train drivers’ union, have voted in favour of strike action in the new year.