London Underground (LU) has made a revised five-year pay offer to trade unions which would see staff get a 4.5% pay increase this year, followed by a rise of inflation plus 0.25% increase in the four subsequent years.
A further guarantee has also been given that London Underground would not take into account negative retail prices index (RPI) inflation, should such a situation occur, so staff would be guaranteed a pay increase each year.
An initial offer was made last month, at which time the transport provider asked the trades unions to take into account that the basic pay offer could be improved if their claims for changes to other terms and conditions could be limited to those which did not incur extra costs.
The previous offer was rejected by the unions.
As before, London Underground has committed to examining further issues around statutory holiday working arrangements, flexible working and career breaks for train operators.
Discussions also continue with trade unions on working arrangements over the period of the 2012 Olympic Games.
Richard Parry, director of London Underground, said: “This very fair and affordable multi-year pay offer to the trade unions 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 Transport for London’s finances.
“We have asked the unions to respond to our offer in writing and we look forward to working with the unions to reach an agreement as soon as possible.”
The proposed deal would cover the period from April 2011 to April 2016. The previous agreed pay deal, which saw staff get a 1.5% increase in year one and RPI plus 0.5% in year two, expired in March.
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