The Transport Secretary wants to “encourage” a deal between employers and trade unions and plans to reform the rail industry to benefit both rail users and staff.
Mark Harper said during a visit to a HS2 site in Warwickshire on Thursday that hammering out a deal to modernise the way the railways work would generate savings which could then be used to offer pay rises to staff.
His comments come as rail passengers across the UK face huge disruption over Christmas and the New Year in a worsening dispute over pay and conditions.
The Rail, Maritime and Transport (RMT) union announced that more than 40,000 workers across Network Rail and 14 train operating companies will stage a series of 48-hour walk-outs.
Industrial action will take place on 13, 14, 16 and 17 December and on 3, 4, 6 and 7 January, effectively crippling the country over the crucial Christmas period.
If the strikes go ahead, businesses across the UK are set to lose out on millions.
Harper said: “We’ve got problems with industrial relations at the moment and I’m working hard with my ministerial team – with the rail minister – to try and encourage the trade unions and the employers, Network Rail and the train operating companies to hammer out a deal on reform.
“That generates some savings which can then be used to offer a decent pay-rise to the people that work in the industry, so that we can start improving services for passengers today.
He said that he had a very positive, constructive meeting with Transport Salaried Staffs Association (TSSA) boss Frank Ward and RMT boss Mick Lynch last week.
A number of unions have announced strikes and other forms of industrial action across the rail network in December, set to bring crippling periods of disruption to the network in the run-up to Christmas.
Earlier this week, Harper told Sky News that pay rises that match or are higher than inflation are “unaffordable” for public sector workers.
“I think inflation-matching or inflation-busting pay rises are unaffordable," he said.
“I think we want to try and give all the workers in the public sector who work very hard decent pay rises, but they can’t be inflation busting pay rises because there isn’t the money to pay for those.
“There is just some honesty in being straight with people about the economic context the country faces.”