New pay deal averts rail strikes

Two rail strikes have now been averted after a deal was reached

Two rail signallers' strikes which threatened to cause chaos for passengers have been called off.

Network Rail said thousands of signal workers no longer planned to walk out on Friday 21 July, or to stage a 48-hour walkout next week.

The company and the Rail Maritime and Transport union have agreed on a pay rise and the earlier implementation of a 35-hour working week.

Union members must vote on the deal in a ballot ending on July 28.

Under the proposed deal workers will receive a pay rise of 3.2% backdated to April, an increase of the rate of inflation plus 0.75% from April 2007, an increase in travel subsidies and improved London allowances.

Network Rail chief executive John Armitt said: "This is good news for passengers and freight customers, who are no longer facing the disruption of a strike.

"This is also good news for our people, who could soon have their new pay deal implemented.

"We hope RMT members will vote to accept this deal, which includes a generous rise in pay and benefits, and which would see the 35-hour working starting next month."

The RMT will recommend the pay deal to its members in its July referendum.