Tube drivers to get £50,000 a year
The Rail Maritime and Transport (RMT) union on Monday began consulting on a four-year pay deal which LU said offered the prospect of no industrial action over wages until at least 2015.
Under the deal, staff will get a 5% pay increase this year followed by RPI inflation plus 0.5% in the subsequent three years.
Industry sources said that if RPI inflation stays reasonably high, some Tube staff will receive a pay rise approaching 20% by the end of the settlement period.
The RMT said the issue of a payment for working during next year's Olympic Games in London was separate to the four-year wage deal.
General secretary Bob Crow said: "We saw major movement from LU and we now take this improved offer back to our local reps.
"In these days of austerity we have shown that fighting trade unionism is the best defence from attacks on jobs and living standards. I doubt you will find a better offer than this anywhere else in the public sector."
Mike Brown, managing director of London Underground, said: "This fair and affordable multi-year pay deal is a good deal for London - providing a platform for stability over a crucial time for the Tube network.
"This deal enables our employees' salaries to keep pace with the cost of living whilst being realistic given the current economic situation and the pressure on Transport for London's finances."
© 2011 Press Association