London Underground has increased its pay offer to staff after Tube unions rejected two earlier deals.
The new five-year offer, which covers April 2011 to April 2016, would see workers receive a 4.75% rise this year, an increase 0.25% on the previous offer, plus rises of inflation plus 0.25% in each subsequent year.
LU says it has also offered a guarantee that the offer will not take into account negative inflation, ensuring workers would receive a minimum of 0.25% each year.
Union requests to make the system for allocating shifts on Bank Holidays “more responsive” have also been accepted.
Howard Collins, Chief Operating Officer, LU said: “We met with the unions today and have made what we believe is a very fair and affordable multi-year pay offer to the trade unions that will enable our employees’ salaries to keep pace with the cost of living and guarantees an increase in real terms over the life of the deal.
“At the same time it is realistic given the current economic situation and the pressure on TfL’s finances.”