RMT members had already rejected the company's original offer of 4.8 per cent this year and RPI plus 0.5 per cent next year on the grounds that the second-year element would not protect members against the rising cost of living, with key costs rising far faster than the official inflation rate.

The union has informed the company that it is now in dispute, and will be balloting members for strike action and for action short of a strike. The union has also told the company that it wants a common anniversary date for all operations and infrastructure workers.

"The cynical offer of an extra tenth of one per cent in year one on condition that we do not ballot our members simply fails to address our members' concerns over the second year of the offer," RMT general secretary Bob Crow said today.

"Our members' verdict on the original offer was quite clear and we warned Network Rail that should it fail to table an acceptable offer on the second year of the deal we would ballot for industrial action.

"With housing costs, utility bills, pensions and food bills rising far faster than the official inflation rate the failure to improve the second-year means our members are looking at a real-terms pay cut and after consulting our reps we have told the company we are in dispute.

"We have also told the company that we want a return to a common anniversary date for all operational and maintenance and infrastructure workers," Bob Crow said.

ends

Notes to editors: Network Rail's original offer, of 4.8 per cent this year and RPI plus 0.5 per cent in 2009, was rejected by RMT members by a margin of two to one. The company had been informed that they year one element was acceptable but that the year 2 element was not.

The company's offer of an extra 0.1 per cent in year one, bringing it to 4.9 per cent but conditional on the union not balloting for industrial action, would leave the second-year element unchanged.

See also:

Rail staff to be balloted over pay

Press Association: 17 April 2008

Thousands of railway signal workers are to be balloted for strikes after union leaders attacked Network Rail for increasing a rejected pay offer by just 0.1%.

The Rail Maritime and Transport union said 5,000 signallers and other operational staff will vote on whether to launch a campaign of industrial action.

The workers have already rejected a two-year pay offer of 4.8% this year, and the rate of inflation plus 0.5% next year, which NR increased by 0.1%, said the RMT.

General secretary Bob Crow said: "The cynical offer of an extra tenth of one per cent in year one on condition that we do not ballot our members simply fails to address our members' concerns over the second year of the offer.

"Our members' verdict on the original offer was quite clear and we warned Network Rail that should it fail to table an acceptable offer on the second year of the deal we would ballot for industrial action.

"With housing costs, utility bills, pensions and food bills rising far faster than the official inflation rate the failure to improve the second year means our members are looking at a real-terms pay cut and after consulting our reps we have told the company we are in dispute.

"We have also told the company that we want a return to a common anniversary date for all operational and maintenance and infrastructure workers."

Meanwhile, last-ditch talks were being held to try to avert a dispute with thousands of NR maintenance staff in a separate row over pay.

The RMT announced earlier that its members had rejected a pay and conditions offer by a "landslide" margin of more than 100 to one.

Around 6,600 workers voted against a proposed single set of terms and conditions for maintenance staff, with just 56 in favour.