Signallers may be balloted on strike action

The leader of the Rail, Maritime and Transport (RMT) Union, Bob Crow, described a 3% offer made at Tuesday's talks as "the worst in the industry".

The RMT meets next week to decide whether to ballot its 7,000 workers.

A second union, the Transport Salaried Staffs' Association, is considering a strike over London-weighted pay.

Network Rail says three pay options are on the table and it is "astonished" at the RMT decision after amicable talks.

'Open door'

John Armitt, chief executive said: "We find the strike threat from the RMT nothing short of astonishing as we are in the middle of constructive pay negotiations. There has been no 'breakdown of talks' as they have claimed.

"A variety of good deals are on the table for our unions to consider. They all exceed inflation and include guarantees around pensions.

"We will continue our open-door policy with the unions and look forward to continuing constructive talks in the future."

We will not sit back and watch as our members are made to pay the price of privatisation Bob Crow RMT

Mr Crow, RMT general secretary, said: "The company has imposed a pension scheme for new entrants that is no better than a glorified savings plan subject to the whims of the market.

"Their pay offer of 3% is the lowest in the rail industry, and they have refused to follow the Mayor of London's [Ken Livingstone] lead and re-instate travel facilities to staff who joined the railway after privatisation in 1996.

"This is a company whose directors have handed themselves bonuses of up to �450,000 on top of telephone-number salaries and which boasts of spending �14m a day."

The TSSA plans a meeting of its members on 19 April to consider a strike vote.

'Derisory' offer

The union is angry Network Rail is raising the London allowance for operational staff only - meaning administrative and head office staff miss out.

General Secretary Gerry Doherty said the Network Rail offer was "divisive and derisory" and all members in London faced the same costs.

The union is also concerned about pension plans for new staff.

A Network Rail spokeswoman said Tuesday was its third meeting with the RMT, TSSA and AEEU / Amicus unions.

She said an increased offer was based around three different options for the unions to consider - one, two and three-year pay deals.