A four-year pay deal offering the prospect of no industrial action over wages until at least 2015 is to be recommended for acceptance by unions representing Tube and other transport workers in the capital, London Underground has said.
The company said that following a meeting at the conciliation service Acas, unions had confirmed they will be recommending acceptance of a four-year pay settlement.
The deal, which would be the longest ever achieved, offers "stability and the prospect of no industrial action over pay until at least 2015", said LU, adding staff will get a 5% pay increase this year followed by RPI inflation plus 0.5% in the subsequent three years.
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.
"We can now get on with the vital task of delivering the huge improvements to the network that Londoners need and deserve while we continue to develop our detailed plans to keep London moving during next summer's Games."
The deal covers the period from April 2011 to March 2015.
Bob Crow, general secretary of the Rail Maritime and Transport union, said: "By standing firm in these days of austerity our members have secured one of the best pay offers in the country and one that protects their standards of living well into the future.
"This offer proves that strong trade unionism is the only defence that workers have when jobs and pay are under attack. We will now be consulting our local reps before putting the detail of the offer to our executive for consideration."
LU had made a number of pay offers in recent months which had been rejected by unions.