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Hard evidence is emerging of the devastating financial impact on Scottish business of the national rail strike by the RMT union.

Railway stations north of the border were virtually deserted yesterday as the first of three 24-hour walkouts hit services.

ScotRail cancelled 90% of its train operations, while cross-border services were also badly affected.

Tens of thousands of Network Rail staff in Britain are striking on three days this week - yesterday, tomorrow and Saturday - in a dispute over pay, working conditions and redundancies.

Scottish shops, hotels, restaurants, bars and tourist attractions are among those worst affected, while commuters and tourists are also suffering.

The north-east, in particular, is being badly hit on the strike days, as there are no ScotRail services between the area and the rest of Scotland.

It could be Monday before services improve significantly on Scotland's railways. ScotRail has warned that, on the days following strike action, there will be disruption caused by the reopening of signal boxes at different times across the country.

For example, the first service from Dundee to Aberdeen this morning is at 11:18am compared to the usual time of 7:22am.

Heavy cost of dispute

Firms north of the border are already counting the heavy cost of the dispute.

Leon Thompson, from UK Hospitality Scotland, predicted the sector was set for "in excess of £50million of losses" this week.

He told the BBC: "We're looking at a situation where our fragile businesses are trying to move towards recovery. So it's a very, very difficult week.

"We're talking about businesses which have had two years of restrictions and lockdowns in place, which have severely impacted their ability to trade.

"They are carrying unprecedented levels of debt and they really need to have a good summer. Now this industrial action, which is essentially going to wipe out all business this week, is a real concern."

Scott Meikle owns The Moor of Rannoch Restaurant and Rooms next to Rannoch train station, 40 miles down a single-track road from Pitlochry.

He had 24 room bookings this week until news of the strike slashed the figure to six.

Fear of impact of more cancellations

More cancellations over the summer would be "devastating" for business, Mr Meikle said.

Gordon Martin, RMT organiser, told the BBC they had been "forced" to take strike action.

"This is of the UK Government's making," he said. "We have been forced into this as a defensive measure. Our members' jobs and livelihoods are at risk here.

"More importantly, the safety of the rail infrastructure is at risk and safety in railway stations and on trains is at risk."

But UK Transport Secretary Grant Shapps told the House of Commons that rail workers were endangering their livelihoods by taking industrial action.

He said the UK Government had plans for rail reform and a more "agile, flexible workforce - not one that strikes every time someone suggests a change to the railways".

Talks resume today in a bid to resolve the dispute. The RMT will meet Network Rail and train companies.

Union wants 7% pay rise

The union is calling for a pay rise of 7%, while employers have offered a maximum of 3%. Inflation - the rate at which prices are rising - is currently 9% but the Bank of England forecasts it will reach about 11% in the autumn.

The RMT has been asked by Network Rail to attend formal consultation talks next month on introducing "modern working practices".

Network Rail official Tim Shoveller said about 1,800 jobs were expected to be cut, but the "the vast majority" would be through "voluntary severance and natural wastage".

The changes would mean "dumping outdated working practices and introducing new technology", he said.

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