RMT union rejects new Tube pay offer

Union leaders representing thousands of London Underground workers have rejected an improved five-year pay offer, it was announced today.

The Rail, Maritime and Transport union said the new offer of 4.75% this year was only a "fractional increase" on the previous 4.5% in the offer for this year.

LU is still offering rises of RPI inflation plus 0.25% in each of the following four years, which includes the period covering the Olympic Games.

It is the third pay offer made by LU.

RMT leader Bob Crow said: "Our members are experiencing significant increases in their costs of living, the latest being the outrageous price rises announced by British Gas.

"Moreover, LU's offer is for a five-year settlement which is too long duration, especially when the offer for years two to five is only a small fraction above RPI.

"This would leave London Underground staff vulnerable to real-terms pay cuts in years when RPI under-estimates the real rise in living costs, as it often does and would leave us unable to claim for further increases until 2016."

LU chief operating officer Howard Collins said: "We have made a very fair and affordable multi-year pay offer to all of our trade unions, increased last week to 4.75% this year and RPI plus 0.25% in four future years.

"Such an offer would enable our employees' salaries to keep pace with the cost of living and guarantees an increase in real terms over the life of the agreement.

"At the same time it is realistic given the current economic situation and the pressure on TfL's finances. Discussions continue with all our trade unions."

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