£4,600 for some as Tube bosses agree strike deal

Tube workers who threatened eight days of strikes will receive pay increases of up to £4,600, it was revealed today.

The deal will push the pay of track points technicians to about £37,000. Senior signals staff already earning up to £52,000 will get an additional £2,600 in the first stage of a two-year deal.

Leaders of the RMT union called off the strike, which was due to start at noon today, after forcing Tube Lines to increase its pay and conditions offer.

In the face of the strike threat Tube Lines agreed a two-year deal, increasing pay by 4.99 per cent this year (up from 4.95 per cent) and RPI plus 0.85 per cent (up from 0.75 per cent) from next April.

A subsidy on travel also goes up, from 80 per cent to 90 per cent of its cost from then.

The offer, which was revealed in final editions of last night's Standard, includes a minimum £1,000 salary increase for lower paid grades and apprentices, while points technicians will receive an additional increase of £3,000 on their basic salaries plus the

4.99 per cent rise in the first year of the deal.

Mayor Boris Johnson said it was "very good news for all of London" that the strikes had been called off. "I congratulate the parties for reaching an agreement that has avoided causing unnecessary disruption to many Londoners." But the RMT's victory by using its industrial muscle to improve pay and conditions will only increase fears that it will use the same tactic in future disputes.

The union is engaged in half a dozen other, separate, disputes across the Tube network, used by 3.3 million people a day, affecting various lines. They still have to be resolved and more strikes are threatened.

A further four days of strikes by Tube Lines staff were scheduled in two weeks. They have also been " suspended" while the 1,000 employees vote on whether to accept the new offer - if they reject it the strikes will be back on, said RMT leader Bob Crow.

Tube Lines looks after the Northern, Jubilee and Piccadilly Lines, together used by nearly two million passengers a day, which would either have been brought to a stop or, at best, suffered severe disruption.

Other lines across the network could also have been affected. Maurice Fitzpatrick, analyst at accountants Grant Thornton, estimated losses of £50 million to the national economy had the three lines came to a stop this week. The deal followed five hours of lastditch talks between the union and Tube Lines.

Mr Crow admitted it had been "hard negotiating" but members were being recommended to accept the new package. "If the deal is rejected, strike action will be back on," he said.

A spokeswoman for Tube Lines refused to discuss details of the deal. But John Edmonds, Tube Lines human resources chief, in a letter sent last night to Mr Crow, said he was "willing to review and discuss" further demands from the union which fall outside the final pay offer.

The RMT is certain to push for further negotiations on pensions. It wants all Tube Lines staff to have a final salary pension scheme but this has been refused.

Staff at Metronet - now back in the public sector, under Transport for London, after it went bust last year - have a final salary scheme and the RMT is determined to achieve parity.

Terry Morgan, Tube Lines chief executive, said a deal had been agreed "that will satisfy all parties".