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BonusesEmployee relationsLatest NewsIndustrial action / strikesTrade unions

Network Rail withholds bonuses from striking union members

by Ashleigh Webber 30 Aug 2023
by Ashleigh Webber 30 Aug 2023 M Barratt / Shutterstock.com
M Barratt / Shutterstock.com

Network Rail has withheld annual bonuses from union members who took part in strikes.

Back in March, RMT members settled their dispute with Network Rail and accepted a pay rise worth 9% over two years.

However, the railway infrastructure organisation recently told staff that they would not receive their annual bonus if they took part in any of the strikes from June 2022 onwards.

Rail strikes

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Minimum service levels to be imposed as Strikes Act passes

The decision is expected to affect 20,000 people and more than 12,000 have signed a petition urging Network Rail to reinstate the bonuses, according to reports.

Those who did not strike will receive around £300.

“Our position was made very clear: any discretionary payments would focus on those who continued to support rail services during industrial action,” a Network Rail spokesperson told The Guardian.

“Awarding performance-related pay [PRP] is Network Rail’s way of recognising colleagues for their contribution to achieving the company’s performance targets. We have been crystal clear with both our trade unions and our employees that the cost of strike action would directly impact the PRP scheme.”

RMT general secretary Mick Lynch said: “The decision to exclude trade unionists from this bonus scheme is disgraceful and is understandably causing significant consternation among members.

“It is clear that the stance adopted by Network Rail both penalises and discriminates against members for exercising their human right to associate and to participate in lawful trade union activities. However, legal protections only exist for those who are unfairly dismissed for taking part in lawful strike or other industrial action which is called officially.

“As the bonus scheme is discretionary, and not a contractual obligation, the decision to exclude RMT members has been taken in bad faith and is a transparent attempt to divide the workforce and undermine [the] union, by specifically rewarding those who refused to stand in solidarity with union members taking essential strike action.”

It is not unlawful for withhold a bonus from union members, said Barry Ross, director at Crossland Employment Solicitors.

“While employees who are planning, or organising, industrial action are protected from suffering detriment as a result of doing so, actually participating in industrial action does not give the same protection under the current case law in the UK.  What this means is that where an employer imposes a penalty short of dismissal, such as removing a bonus from those staff in this case, it is presently not unlawful to do so,” he said.

“In November 2022, The Supreme Court granted permission to appeal the decision of the EAT in Mercer v Alternative Future Group Ltd and another, so this position may change sooner rather than later.”

Network Rail has been contacted by Personnel Today.

RMT members working across 14 train operators are set to strike again on 2 September. Around 20,000 workers are expected to walk out.

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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