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    Home > Headlines > Union reaches pay deal with London underground after strike action
    Headlines
    Union reaches pay deal with London underground after strike action

    Published by Global Banking and Finance Review

    Posted on November 4, 2025

    2 min read

    Last updated: January 21, 2026

    Union reaches pay deal with London underground after strike action - Headlines news and analysis from Global Banking & Finance Review
    Tags:CompensationTransportation Sectorpublic policyfinancial management

    Quick Summary

    London Underground workers secure a new pay deal after strikes, including a 3.4% increase and additional benefits. TfL welcomes the agreement.

    Table of Contents

    • Overview of the Pay Agreement
    • Details of the Pay Increase
    • Additional Benefits for Workers
    • Impact of Strikes on Transport
    • Response from Transport for London

    London Underground Workers Secure New Pay Agreement After Strikes

    Overview of the Pay Agreement

    LONDON (Reuters) -Britain's RMT trade union said on Tuesday it has secured a three-year pay deal for London Underground workers, following strike action in September that brought the public transport network to a standstill.

    Details of the Pay Increase

    The pay deal provides a 3.4% increase in the first year, followed by rises in line with the Retail Prices Index (RPI) inflation measure over the next two years, with guaranteed minimum increases if inflation drops.

    Additional Benefits for Workers

    The RMT union said in a statement it has also won "fatigue-friendly" shifts, additional talks on staff travel, and a guaranteed £400 payment on Boxing Day, a public holiday celebrated on December 26. 

    Impact of Strikes on Transport

    In September, five days of strikes on the "Tube", which is used by millions every day, caused major disruption across London. The new deal is expected to help prevent further industrial action.

    Response from Transport for London

    Transport for London (TfL), which operates the underground, welcomed the RMT's decision to accept its pay offer, according to a statement cited by British media.

    "This multi-year offer is fair, affordable and provides certainty for our colleagues over pay for several years. We are engaging with all of our unions on this offer and look forward to their responses," a TfL spokesperson said. 

    According to TfL, there were no proposed changes to employees' working hours.

    (Reporting by Catarina Demony; Editing by Daniel Wallis)

    Key Takeaways

    • •RMT union secures a three-year pay deal for London Underground workers.
    • •The pay deal includes a 3.4% increase in the first year.
    • •Additional benefits include 'fatigue-friendly' shifts and a Boxing Day payment.
    • •September strikes caused major disruption across London.
    • •Transport for London welcomes the agreement to prevent further strikes.

    Frequently Asked Questions about Union reaches pay deal with London underground after strike action

    1What is the RMT union?

    The RMT (National Union of Rail, Maritime and Transport Workers) is a trade union in the UK representing workers in the transport sector, advocating for their rights and interests.

    2What is the Retail Prices Index (RPI)?

    The Retail Prices Index (RPI) is a measure of inflation in the UK, reflecting the average change over time in the prices paid by consumers for a basket of goods and services.

    3What are fatigue-friendly shifts?

    Fatigue-friendly shifts are work schedules designed to minimize worker fatigue, often incorporating longer breaks or adjusted hours to enhance employee well-being and safety.

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