London Underground has had its latest pay offer to workers rejected by the Rail, Maritime and Transport union. The deal was for a 4.5 per cent rise this year and inflation plus 0.25 per cent over the next four years. However, leader of the RMT, Bob Crow, said the five-year package was not enough.

A spokesman for Transport for London said the deal was fair and affordable and that negotiations with the trade unions were ongoing. Crow said he wanted to see a deal on the table which was similar to the one the RMT struck with Network Rail. This included a one-off pay increase of £500 and a 10 per cent rise over two years.

This is the second time that London Underground has had its deal refused. The RMT recently rejected a four per cent increase this year followed by inflation plus 0.25 per cent over four years.

A spokesman for the RMT said the union would continue to work with London Underground on behalf of its workers and admitted that the latest offering was an improvement. However, he added that it remained a five-year deal, was still below the level of inflation and did not address the union’s requests for better conditions.

Richard Parry, director of London Underground, said he believed the deal to be both affordable and fair. He added that it would ensure that salaries kept up with the cost of living at a time when the economy remained week and there was an increasing amount of pressure on Transport for London’s finances.