Tube bosses cave in

The Tube strike on New Year's Eve is off.

A deal has been agreed between London Underground and the RMT, largest of the Tube unions, in a row over pay for signal staff.

The settlement represents a remarkable victory for the union after a four-year battle.

The RMT has consistently demanded a 5.7 per cent rise for key staff but LU had made a series of lower - undisclosed - offers and attempted to tie any settlement into a new deal on working practices.

Now the union has won its inflation-busting deal without making any concessions.

The strike would have halted services across the network and ruined Mayor Ken Livingstone's plan to run allnight services on New Year's Eve.

Under the deal all 500 signallers and line controllers will work a 35-hour week from July with the most senior earning ?44,000 after staged increases starting in 18 months time.

However, the strike threat brought a furious reaction from Lynne Featherstone, transport chief of the London Assembly Liberal Democrats.

She said: "Christmas and New Year Tube strike threats are now as traditional as turkey and carols. Londoners cannot go on being held to ransom like this."

LU has also withdrawn proposals to cut minimum rest periods for signallers between shifts from 12 to 11 hours and pledged there will be no job losses. The union had warned that up to 76 jobs could be axed.

Signallers and line controllers are on a wide range of salaries and have varied working conditions. LU wants to standardise them. Staff earn £25,000 on average.

Bob Crow, the RMT leader who had ordered the strike - and another next Wednesday - said the deal puts the signallers and line controllers "at the top of the industrial pay league in Britain". He said: "This is the deal our members have been waiting for and Londoners can now enjoy the festive season without disruption to Tube services."

Meanwhile, talks continue today to avert a second 24-hour strike on the Piccadilly line on 5 January. Tens of thousands of passengers suffered huge disruption during the first stoppage on Christmas Eve. The strikes had been called in protest over train driver Mario Vachos who has been demoted from his ?34,000 a year job to station assistant for nine months after having recorded four incidents of passing signals at red.

But Aslef now says the Piccadilly line dispute is not about the demotion of Mr Vachos claiming instead that LU management has "violated" a joint agreement concerning safety and signals passed at danger (Spads.)

The union says it will escalate the Piccadilly line dispute - and ballot all other lines across the network if a deal is not reached.

Steve Grant, Aslef London district secretary, said today: "Unless LU agree to a complete review then we will ballot the whole of the Tube system in the New Year."

Mike Brown, LU's chief operating officer, denied the union claims, saying: "We believe we acted fairly and responsibly when handling the case."

Thousands of mainline rail commuters missed their usual trains today because operators are running a reduced Saturday-style service. When full services return next week commuters face fare increases of up four per cent. Travellers should check with National Rail Enquiries before setting out on 08457 484950 or www.nationalrail.co.uk.