The RMT and the Rail Delivery Group have announced what appears to be a major step forward in resolving the long-running industrial dispute over pay and conditions.

New offers will now be subject to ballots of RMT members at the train operating companies still involved in the dispute, which are most of those in England.

The RMT has described the new understanding as a ‘welcome development’.

The RDG said: ‘Following further negotiations between RDG and RMT, a Memorandum of Understanding on the current dispute has been developed which sets out a process for a mutually agreed way forward, including a backdated 2022 pay rise for staff and job security guarantees.

’This will now be put to RMT members in each of the Train Operating Companies in a referendum vote. If accepted, this MOU will terminate the national dispute mandate, creating a pause and respite from industrial action over the Christmas period and into Spring next year, while allowing for these important negotiations on proposed reforms to take place at local train operating company level, through the established collective bargaining structures.

‘These discussions would be aimed at addressing the companies' proposals on the changing needs and expectations of passengers as well as unlocking further increases for staff, in order to help to secure a sustainable, long-term future for the railway and all those who work on it.’

The RMT said: ‘If accepted, this MOU will terminate the national dispute mandate, creating a pause and respite from industrial action over the Christmas period and into Spring next year, while allowing for these important negotiations on proposed reforms to take place at local train operating company level through the established collective bargaining structures.

‘These discussions would be aimed at addressing the companies' proposals on the changing needs and expectations of passengers as well as unlocking further increases for staff, in order to help to secure a sustainable, long-term future for the railway and all those who work on it.’

RMT general secretary Mick Lynch added: ‘This is a welcome development and our members will now decide in an e-referendum whether they want to accept this new offer from the RDG.’

The Department for Transport responded: ‘We welcome the RMT putting this fair and reasonable offer to its members in a referendum, marking a positive step towards resolving this dispute.

‘The Rail Delivery Group’s offer guarantees no compulsory redundancies and a fair pay rise, while ensuring we can take forward much-needed reform to secure the future of our railways. We hope RMT members will recognise the benefits, accept this offer and put an end to the RMT’s industrial action.’

However, this development does not affect the separate dispute between the drivers’ union ASLEF and most train operators in England, which continues.