The Communication Workers' Union (CWU) has called off strike action which had been set for later this week.

The suspension comes as the union's executive continues talks on whether to accept a Royal Mail deal.

The CWU must decide whether or not to recommend the offer, which is aimed at resolving a long-running row over pay, jobs and pensions.

An announcement is expected on Tuesday on whether the CWU will accept Royal Mail's 6.9% pay rise over two years.

A series of 48-hour stoppages and unofficial walkouts is estimated to have cost Royal Mail more than £200m.

The union had plans for strikes to be carried out in various parts of the country on different days this week.

Marathon talks

Leaders of the CWU are presenting the terms of the deal to the union's executive at their headquarters in Wimbledon.

The agreement was hammered out last week during marathon talks with Royal Mail's chief executive Adam Crozier.

Despite Friday's agreement, wildcat strikes have continued to disrupt services in some areas.

Unofficial action has been taking place in Yorkshire and Liverpool, with union representatives in Yorkshire reportedly opposed to working later hours.

In a survey of more than 250 company heads, half of the respondents said the strike had cost their companies at least £1,000.

According to the London Chamber of Commerce, the nationwide mail strikes have cost the city more than £300m

Flexible working

A ballot of 130,000 workers will be called if the CWU accepts the Royal Mail settlement.

A simple majority would be needed to approve the deal. The results would be declared one month later.

While no details have been released, the BBC understands that the 6.9% pay rise over 18 months will consist of a 5.4% pay rise between 1 October 2007 and 1 April 2008, followed by a 1.5% pay rise from 1 April 2008 to 1 April 2009. Workers will also receive a lump sum payment of £175.

In addition, the CWU has agreed to support consultation on ending the current final salary pension scheme.

The CWU has previously said that the Royal Mail's modernisation plans would cost 40,000 jobs.

Source: BBC News