ARRIVA says it will not increase its basic pay offer to striking conductors despite losses from the dispute running into hundreds of thousands of pounds.

Arriva Trains managing director Euan Cameron said last night that the three per cent on the table would stand, with any further increase having to be made up from productivity gains.

He also said that a two-day walkout last week by Rail Maritime and Transport workers' union members lost the train company almost half-a-million pounds in revenue.

Conductors working for Arriva Trains Northern are due to stage a second strike on Tuesday and Wednesday, in a dispute over a growing pay gap between guards and drivers.

Mr Cameron, who indicated that the conciliation and arbitration service Acas could be asked to step in, said the company was "very keen" to avert another strike with further talks due today.

It is also facing possible action from the drivers' union Aslef, which is said to be unhappy that three of its members were demoted after an alleged breach of safety rules.

Mr Cameron accepted that customers were dissatisfied with the service currently being offered by Arriva and the company was "apologising at every turn".

Ninety eight per cent of services would be back running from February 25, he said.

Arriva Trains Northern faced more woe yesterday after it was revealed it had the third-worst record in the country last year for signals passed at danger (Spad).

The Health and Safety Executive said it recorded 29 Spads over the period.

In the most recent incident, a passenger train overshot a signal in Newcastle, on December 22, by more than 200 yards.

The 6.25pm train caused damage to the track but no one was injured.

* Transport company Nexus offered a revised 3.8 per cent pay increase to Tyne and Wear Metro drivers last night, in an attempt to end a pay dispute