Train guards will receive a bonus of £300 for every five days a week they work under a new overtime contract signed by Transport Secretary Louise Haigh.
Late last month, an agreement was reached that prohibits CrossCountry employees from striking every Saturday this month.
The operator, which operates a patchwork of long-distance services from Penzance to Aberdeen, has incurred the wrath of the RMT trade union by employing managers to replace rank-and-file workers at weekends.
Employees typically work four days a week and are paid time and a half for Saturday work.
However, they will now receive a bonus of £300 and their normal salary until the middle of next month.
This unusual agreement was made along with the bumper wage agreements that were intended to end the nation's railroad disputes. Guards and other railway workers received a 9.5% raise over two years.
It focuses in a new way on Ms Haigh, the former Unite shop steward who was publicly slapped by Keir Starmer at the weekend for urging Britons to boycott P&O Ferries.
The comments have sparked fury from the company's parent company, Dubai-based DP World, which has threatened to withdraw its £1 billion investment ahead of tomorrow's fabled Prime Minister's Global Business Summit.
Transport Secretary Louise Haigh struck a deal late last month to avert planned strikes every Saturday in October by CrossCountry
Keir Starmer is struggling to stop a Labor Party meltdown on the eve of his world business summit after 'scapegoating' Louise Haigh for attack on P&O Ferries
Labor MP Ian Byrne has joined in the sharp reaction to Sir Keir's public rebuke
A study by More in Common published today has found that Sir Keir's personal ratings have fallen again
Under the deal, Saturday bonus payments will be pushed back to August and come just days after Labor struck a nationwide deal that gives rail workers a 9.5% pay rise over two years.
Shadow transport secretary Helen Whately told the Sunday Times: “Rail unions can't get enough of this government. They now know that every time they go on strike, Labor will fall.
A Department for Transport spokesman said: “While this is a local matter for CrossCountry, it is vital that passengers receive a more reliable service every day of the week – something that will help ensure our rail recovery.”
Meanwhile, Business Secretary Jonathan Reynolds was hesitant to agree with Ms Haigh's call for a boycott of P&O Ferries.
Reynolds only insisted that this was “not the government's position” because he had been questioned repeatedly about his cabinet colleague's attack.
When pressed on whether he would steer clear of the operator, Reynolds said he “hasn't used the ferry recently,” suggesting that would depend on the carrier's commitment to fair treatment of staff.
He admitted the government had had to “talk” to the Dubai-based company's owner, DP World, which had threatened to withdraw a £1 billion investment package.
Sir Keir – who finally admitted this weekend that his first 100 days in power had been “precarious” – tried desperately to salvage the deal by slapping Ms Haigh.
Jonathan Reynolds only insisted this was “not the government's position” as he was repeatedly questioned over his cabinet colleague's attack
Last week, Angela Rayner jointly issued a press release with Ms Haigh in which she slammed P&O Ferries for laying off 800 workers in 2022. They are both said to be “furious” at their treatment
But Ms Haigh and Angela Rayner – who jointly issued a press release last week sharply criticizing P&O Ferries for laying off 800 workers in 2022 – are being described as “crazy jumping”.
In an interview titled News from the Sky this morning, Mr Reynolds denied that Ms Haigh had “undermined” the summit, insisting she was “part of the team”.
On whether he too believes there is a need for a boycott, Reynolds said: “That is not the government's position.”
The Tory pointed to this line as evidence of the damage that Labour's “student policies” will do to the country's prospects.
The dispute began when Ms Haigh and Ms Rayner last week announced new laws to protest seafarers, criticizing P&O Ferries as a “rogue operator”.
The company was named by politicians from both main parties in March 2022 when it abruptly dismissed 800 British seafarers and replaced them with cheaper, mostly foreign workers, saying it was necessary to prevent bankruptcy.
Sir Keir said in an interview that Ms Haigh's call for a boycott of the company was “not the Government's view”.
Officials are said to have been on the phone for hours to repair the damage and reconfirm the announcement.
The source said there was “a lot of engagement overnight” – with assurances the government did not support a boycott of P&O Ferries.
Yesterday afternoon, DP World announced it would proceed once it had “the clarity we need.” The company also announced that its chairman, Sultan Ahmed bin Sulayem, will be present at the summit.
It marks a wild start to the event as ministers launch a new industrial strategy aimed at “delivering lasting stability for investors”.
Sir Keir finally admitted on the BBC Newscast about his government's early troubles, admitting that being Prime Minister was “much harder than anything I have done before”.
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He said: “There will always be rough days, rough times. I've been through this before, there are days and weeks when everything is unsettled.
“There's no way around it, that's the nature of government, you're under enormous control.”
He then admitted that there were “bumps and crosswinds that, you know, I wish we didn't crash into and get pushed through.”
When pressed about what this was about, he admitted that he was referring to “matters related to donations, personnel issues and the like.”
Months of turmoil have seen a remarkable decline in Sir Keir's personal approval ratings, with leading Labor figures calling for him to get his act together.
