Proactive Investors - The Communication Workers Union (CWU) has announced that postal workers will no longer be going on strike later this month following a legal challenge by Royal Mail (LON:IDSI).
The one-day walk-out on February 16 was set to involve 115,000 posties and sorting office staff in response to a dispute over pay and working conditions.
However, union bosses have decided not to fight the legal challenge, citing the risk that losing in court could impact a new strike ballot.
Royal Mail, which is owned by stock market-listed International Distributions Services PLC (LSE:IDS), expressed relief at the cancelled strikes and said that it would use this time to continue discussions with the aim of reaching a deal.
The company challenged the industrial action on the grounds of a "legal error" related to the reasons for the strikes.
The union has stated that it will re-enter negotiations with Royal Mail this week but said if talks fail it will significantly step up the programme of strike action.
Workers are demanding more pay due to inflation and are opposing Royal Mail's proposed changes to working conditions, including compulsory Sunday work.