Pay offer to resolve Tube dispute

Roads were gridlocked as a result of the Tube strike

London Underground (LU) has made what it says is a final offer in an attempt to resolve a pay and jobs row which led to a 48-hour strike.

The two-year deal would see a 1.5% rise in the first year followed by 0.5% the next year. LU's offer did not assure jobs, a main demand of a union.

Last month passengers were stranded when the Rail, Maritime and Transport (RMT) union workers went on strike.

The RMT said it hoped to make "positive progress" on the issue of no job cuts.

The union went on strike as LU failed to meet its demands of a 5% pay rise and a promise of no compulsory redundancies.

'Very fair offer'

The new pay offer is an improvement of 0.5% in the first year for the 25,000 staff.

LU's interim managing director Richard Parry said: "This is a very fair offer made in tough economic times.

"Since the last meeting with all unions, we have received a great deal of feedback from staff who indicated a clear preference for a two-year deal at this time.

"We would now expect all unions to accept this final offer and recommend it to their memberships."

LU said working hours and other terms and conditions would remain unchanged.

Bob Crow, the RMT general secretary, said: "The offer is under consideration and RMT is looking to make positive progress in the crucial, on-going talks on job security."

The management is still in talks with the RMT over compulsory redundancies.

LU maintains it wanted to avoid compulsory lay-offs, but warned some jobs would have to be cut.

Nine Tube lines were affected by the 48-hour industrial action as commuters struggled to get in to work on crowded buses and gridlocked roads.