Steve Todd: "Taken soundings""

RMT spokesman Steve Todd said: "Having received written confirmation this morning of the company's offer and having had time to reflect on that and taken soundings from a cross section of the membership we've decided that it's in everybody's interests, both the membership and the travelling public, that we suspend the action forthwith."

CalMac said that ferry services on the Clyde will resume "following a breakthrough in wage negotiations".

A statement said: "It is agreed by RMT and the company that parity for seagoing staff (Western Isles and Clyde) can be achieved by 2002 on a self-financing and mutually agreed basis.

"The company and RMT union agree to a one hour cut in working hours for Clyde pierhands from the date of return to work (December 24) - from 44 to 43 on a self-financing basis.

'No fare increases'

"This reduction will be agreed, port by port, ensuring that there is no disruption to the company's operations.

"One parity has been agreed for seagoing staff, the company will consider what, if any, implications this has for the operation of shore-based staff."

CalMac managing director, Lawrie Sinclair, said he was "pleased" that agreement had been reached after talks reached an impasse over the weekend.

Jack McConnell: "Common sense"

He said: "Communication lines have always been open and we have achieved a return to work which will enable customers to enjoy the remainder of the festive break.

"The agreement is self-financing and we have protected the customers' interests. There will be no fares increases as a result of this settlement.

"Caledonian MacBrayne staff have expended tremendous energy and commitment in the last few days in an effort to resolve this issue. Our hard work has paid off in the end."

News that the strike had finally been resolved was welcomed by First Minister Jack McConnell.

He said: "At last we have an outbreak of common sense. I am very pleased that the latest round of negotiations have delivered some normality for the islanders for the week ahead.

"This will bring families together and provide a welcome boost for the local tourism trade."