Tube Strike in London Will Cost $180 million
Underground transportation strikes that are taking place in the UK Wednesday and Thursday could cost the nation £110 million ($180 million).
According to The Centre for Economics and Business Research, the strike, which is also causing road traffic chaos, will impose costs on the London and wider UK economy and push a loss of productivity.
Gross Domestic Product (GDP) "per day in London is around £850 million, so if around 5 percent of London’s workers have zero productivity for both days of the tube strike, there would be a loss of £85 million.” Ben Read, managing economist at CEBR, said in a statement.
The loss of GDP from other regions that do business with London has to be factored in, Read added.
With a “conservative” estimate of 25 percent this would bring the total to almost £110 million, he said.
But what could be bad for commuters and the economy, could mean a new way for the UK’s opposition Conservative Party to gather public support, Read said.
“Given the huge pressures on public expenditure, one of the main areas that a potential Conservative government might look at would be the legislation covering trade union activity," he noted.
On Tuesday, the Rail Maritime and Transport (RMT) union, which called the action over jobs and pay, failed to reach an agreement in a last-ditch discussion with transportation bosses.
The strike, which officially ends at 7 pm London time on Thursday, is likely to cause widespread disruption into Friday morning.
-- written by Lianna Brinded