Rachel Reeves emphasized that the Labour government hasn't conceded to union demands, highlighting the necessity of above-inflation pay deals to tackle recruitment issues in sectors like teaching and healthcare.
The junior doctors' proposed pay rise of 22% over two years aims to resolve ongoing industrial action, which has resulted in significant appointment cancellations since March 2023.
The new contracts for train drivers comprise a series of increases, including a 5% backdated pay rise, aligning with Labour's commitment to public sector welfare, while dropping previous restrictive changes.
Despite Conservative criticism, Reeves underscored that the government's acceptance of above-inflation pay rises is a crucial step towards addressing the severe recruitment challenges faced in public services, estimated to cost an additional £11.6 billion.
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