RMT union rejects London Underground pay rise offer

The union representing Tube workers has rejected a five-year pay deal offered by London Underground (LU) saying it was a "real-terms pay cut".

LU proposed a 4% pay increase this year, followed by a rise of inflation plus 0.25% in subsequent years.

Tube bosses described the offer as "fair and affordable".

The Rail Maritime and Transport Union (RMT) said without an above inflation rise, workers would actually suffer a "pay cut of 1.5%" in the first year .

'Fat cat salaries'

The RMT said it wanted an "above-inflation pay rise in a one-year deal" due to the additional amount of work staff were doing due to record number of passengers.

It also accused LU of paying senior managers "fat cat salaries".

RMT general secretary Bob Crow said: "The reality is that with February's RPI inflation being 5.5%, it means that the first year of this offer is not a rise at all, but is actually a real-terms pay cut of 1.5%.

"Add in the pressure on staff of the repeated failures in service as the infrastructure collapses and anyone can see why this derisory offer has been rejected."

Howard Collins, LU's chief operating officer, said: "We've made what we believe is a very fair and affordable multi-year pay offer to the trade unions, which will see staff gain real-terms pay increases and stability over the coming years."

Tube trains will run later during next year's Olympic Games, with services ending in the early hours of the morning.

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