Tube workers made 'final' pay offer in bid to avert more strikes

London Underground made a "final" pay offer to thousands of its workers today to try to resolve a long-running dispute and head off further strikes.

Under the proposed deal, more than 25,000 staff would receive a 1.5% rise this year and RPI inflation plus 0.5% in year two.

The new offer, which will be put in writing to unions, is worth an extra 0.5% in the first year compared with a previous two-year offer.

The Rail Maritime and Transport union staged a 48-hour strike last month over pay, jobs and other issues, causing travel chaos in the capital.

LU interim managing director Richard Parry said: "This is a very fair offer made in tough economic times. Since the last meeting with all unions, we have received a great deal of feedback from staff who indicated a clear preference for a two-year deal at this time.

"We would now expect all unions to accept this final offer and recommend it to their memberships."

LU said the offer brings together two previously discussed proposals for a two and four-year agreement, adding there would be no reduction in working hours or any other changes in terms and conditions.

LU is still holding talks with the RMT over job losses, one of the main sticking points in reaching a deal, with the union calling for a guarantee of no compulsory redundancies.

Bob Crow, leader of the RMT said: "The revised offer is under consideration, and the RMT is still looking to make positive progress in the crucial talks on job security."

The pay offer has been made to all Tube unions in the latest stage of lengthy negotiations, while the RMT was the only union which took strike action last month.

Transport for London maintained that the strike was over the sacking of two Tube workers.