The union representing thousands of London Underground workers has rejected an improved pay offer of rises for the next five years, covering the 2012 Olympic Games period, it was announced today.
The Rail, Maritime and Transport (RMT) union said the offer failed to address its claim for a one-year deal, including "substantial" increases in pay and conditions.
LU made its revised offer earlier this month, worth 4.5% this year, followed by a rise of RPI inflation plus 0.25% in the four subsequent years.
RMT general secretary Bob Crow said: "RMT has considered the latest revised offer from London Underground. Whilst it shows a slight improvement, the offer is still below inflation, does not adequately address our claims for improved conditions, and remains a five-year package.
"It therefore falls well short of settlements we have achieved elsewhere in the industry and fails to address our claim for a one-year deal with a substantial increase in pay and improved conditions. We also note that London Underground has confirmed that this is not its final offer.
"We have therefore rejected this offer and, working with our sister unions, will continue to press the company for significant improvements."
A Transport for London spokesman said: "We have made what we believe is a very fair and affordable five-year offer to all our trade unions, of 4.5% this year and RPI plus 0.25% in future years.
"Negotiations are ongoing with all trade unions."
Discussions are continuing with trade unions on working arrangements over the period of the London 2012 Games after Mr Crow said he would be seeking an Olympic payment of £500 each for Tube workers, in line with a deal reached with Network Rail.