A storm has erupted over a ten per cent pay rise given to a rail boss in the day workers threatening to strike were offered a revised increase of just over three per cent.

Metro chief Mike Parker's salary rises to £88,000 a year, including a 3.5 per cent award to white collar staff last year.

The rise comes as Nexus, which runs the Tyne and Wear Metro, has offered workers a revised 3.8 per cent deal, which yesterday led to the cancellation of strike action planned for Monday and Tuesday.

The deal has angered union leaders involved in pay negotiations on behalf of drivers inspectors and manual workers.

A Rail, Maritime and Transport Union spokesman said: "Any improvement in performance is down to the efforts of the workforce and they should share in the rewards."

A spokesman for Nexus, who confirmed the figures, said: "Mike Parker works for the PTA and, as such, has been the subject of a salary review carried out by them.

"His job was compared with that of other director generals in Passenger Transport Executives across the country as part of this review.

"It found that, despite Nexus being the largest organisation with the most staff, his pay came second bottom in a league table.

"Mike Parker is still some way behind their comparable salaries."

Meanwhile, the Nexus offer of 3.8 per cent increase on basic pay, includes a commitment to reduce the working week from 37 to 35 hours no later than October 2003, which must be self-financing.

Metro operations director Robert Smith said: "This revised offer is a very significant improvement on our initial offer and is at the limit of what we can offer.

"The offer compares will with the rate of inflation currently running at 0.7 per cent and other wage awards elsewhere in the region."

The new offer will now go to ballot.