Rail strikes may spread

Only one in 10 South West Trains services were running this morning as the RMT union pressed ahead with its four-day action - leaving up to 150,000 commuters into Waterloo stranded at stations throughout southern England.

An SWT spokesman said disruption was "as severe" as yesterday when only a handful of rushhour trains were able to run.

Vital talks to break the deadlock over pay and disciplinary measures against union activists were set to resume today.

Business and passenger groups said it was vital the highly damaging dispute was resolved to prevent-it continuing on Monday. The crippling delays seen over the past 24 hours will be far more severe next week when thousands will return to work after an extended break as children go back to school.

Talks today were given even greater urgency with reports that the union may spread its action over pay rise differences between drivers and other staff.

An RMT source said "feelings are running very high and the issue could spread". SWT says it has "already moved a long way" by offering the RMT the equivalent of a 15 per cent pay deal over three years. It insists the real motive behind the failure to reach agreement is the demotion of RMT activist Greg Tucker from driver to ticket collector after a series of "safety-related incidents" - the latest of which is believed to have been speeding.

An SWT spokeswoman said: "The union wants us to reinstate a driver who we don't believe is safe to be let back in a cab."

Industry sources suggest the real reason for the strike could be a power struggle within the union following the death of long-time leader Jimmy Knapp last year.

Hard Left assistant general secretary Bob Crow, who is backed by Mr Tucker, is up against the more moderate Phil Bialyk. The union, however, is insisting that the action reflects legitimate anger among non-driving members that some 600 drivers on SWT have been offered a different deal.

Both sides have been offered a 7.6 per cent rise over 18 months but the 2,000 guards, station staff and ticket collectors will see pay pegged to inflation in October while drivers will not.

The company says this reflects the difficulties in recruiting drivers and agreements reached on productivity.

Today's action will add some three hours onto passengers' journeys according to the London Chamber of Commerce.

It puts the cost to the capital's economy in lost working hours at more than £10 million a day.

Dirk Paterson of London Chamber of Commerce said: "The RMT must call off its grotesque action before Monday when the courts, the Stock Exchange and all businesses return to work. The RMT has had one of the most generous offers that can possibly have been made in the current economic climate. It's outrageously irresponsible of the RMT not to accept it."

A spokesman for London First, describing the state as " four days of sheer cruelty", said: "The last thing we need with fears of a recession is a sense that London can't go to work. Both sides must get around the table and get the strike called off."