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British unions are increasing their demands for pay raises following recent offers to striking doctors and train drivers, raising concerns about more industrial action in the near future.
Local government unions are preparing for a battle after a 2.5% pay offer to council workers and other employees not covered by national pay review bodies.
Unions in health and transport sectors are either taking industrial action or balloting their members, while Unite and Unison are voting for strike action over local government pay.
This surge in demands is a test of Labour’s relationship with unions aiming to restore public sector pay to pre-austerity levels.
Chancellor Rachel Reeves has cautioned about limited public finances, signaling possible spending cuts and tax hikes in the upcoming budget.
The Institute for Fiscal Studies predicts a need for an additional £6-7 billion to fund post-election pay deals.
The government is wary of being perceived as favoring union demands over public service investments.
Train drivers have announced strikes on the east coast mainline, adding pressure on the government’s fiscal plans.
The former Conservative government’s measures to limit union powers are being challenged by increasing demands for pay rises.
Conservatives criticize Labour’s pay rise offers, fearing a domino effect on demands from other unions.
The RMT union is pushing for pay increases, while the government faces challenges in negotiating with various sectors.
The healthcare and education sectors are also gearing up for tough pay negotiations, adding to the government’s fiscal pressures.
Despite the challenges, the government is aware of the financial strains faced by local authorities in settling pay disputes.