Rail boss warns over pay demand

Rail strikes could lead to the worst disruption in a decade

The boss of Network Rail has warned there is not much money available to settle the pay dispute.

Chief executive John Armitt told the BBC the demand by the Rail Maritime and Transport (RMT) union over pay, travel and pensions would cost £51m.

Mr Armitt is hoping negotiations can restart to avoid the UK's first national rail strike in a decade.

But RMT general secretary Bob Crow said he had "serious concerns" about the new pension scheme and wage offer.

He expressed anger over the closure of the company's final salary pension scheme for new workers because of rising costs.

Mr Crow told BBC One's Breakfast with Frost a commission should be set up to look into the matter.

He said because there was no new money for the pension scheme it would become a "shrinking plan".

"What we want is negotiations or a commission set up to see how best we can improve the pension plan for new people coming in the industry and also to defend existing people so their contributions don't go through the roof."

We have got to avert this strike - it will be damaging to everyone in the country John Armitt Q&A: Rail strike threat

On travel concessions, workers are finding it increasingly difficult to live in central London because of high housing costs, he said.

He called for cheaper travel to allow railway staff to live outside the capital.

"The problem that we see is that the men can't afford to live in London or the capital now hence the reason why they want cheaper travel facilities to live on the outskirts so they can come in and buy houses and be able to work for the company," Mr Crow added.

Mr Armitt told the same programme the RMT's demands on pension and travel would cost £40m and the pay demand £11m.

'Damage'

He said: "There's not a lot of money available and we've got to find something within a small amount of money if we're going to do anything at all.

He added: "We have got to avert this strike. It will be damaging to everyone in the country.

"The railways are getting better and it is in everyone's interests to avert this strike."

Talks are still to be set up between the two sides since RMT members voted 58% in favour of strikes.

As well as travel and pension concerns, the union is also unhappy with the three pay deals offered by Network Rail.