Ticket and counter staff at two unions are close to finalising a settlement in their pay dispute with Arriva Trains Northern.

Workers across the north of England will receive a 4% pay increase, backdated to September 2002, with a further increase in April.

The offer has been accepted by ticket staff who are members of the Rail Maritime and Transport Union (RMT), and provisionally agreed by The Transport Salaried Staffs Association (TSSA).

The TSSA acceptance is subject to a referendum of its members.

Continuing talks

The 550 station and retail employees from the two unions have also agreed to continuing talks on restructuring terms.

The strike started in February 2002 over claims that Arriva staff were only paid �13,000 a year in comparison to people doing similar jobs at Midland Main Line and GNER on �16,200.

TSSA Negotiations Officer Steve Coe said: "It has been a long haul.

"This settlement will mean significant gains for Arriva's station and retail staff."

TSSA members are to be balloted on the settlement in the next three weeks.

Ray Price, managing director of Arriva Trains Northern, said: "We are pleased that the RMT has accepted the offer and that the TSSA are recommending the offer to their members."