Tube Unions are to recommend workers accept a new four-year pay settlement which will see them receive a 5 per cent pay increase this year followed by inflation (RPI) plus 0.5 per cent in the subsequent three years.
Unions have rejected a number of earlier pay offers by London Underground, claiming a five-year agreement would leave members “vulnerable to real-terms pay cuts in years when RPI under-estimates the real rise in living costs”.
The new deal, which covers April 2011 to March 2015, includes a guarantee that LU “will not take into account negative RPI, should such a situation occur.”
London Underground MD Mike Brown said: “This deal enables our employees’ salaries to keep pace with the cost of living whilst being realistic given the current economic situation and the pressure on TfL’s finances.
“We can now get on with the vital task of delivering the huge improvements to the network that Londoners need and deserve while we continue to develop our detailed plans to keep London moving during next summer’s Games.”
