A proposed strike by control room staff on Tyne and Wear Metro, in a dispute over pay, has been called off while workers are re-balloted.

The rejection of the latest pay and conditions offer from the employers Nexus, earlier this week, led to the threat of a two day strike on the system, starting on Thursday.

The dispute is continuing, but the named days in August when industrial action was due to take place have been dropped while more discussions take place.

Culture bid

Twenty-three control room workers had voted to reject a revised pay offer put forward by Metro operator Nexus.

Strike action on Thursday and Friday would have coincided with a visit to Tyneside by the judges who will decide if the joint Newcastle-Gateshead bid will win the title Capital of Culture in 2008.

Unison had recommended its members should reject the latest pay offer, triggering the strike.

As well as the two-day stoppage other dates had been set aside in August for strike action.

The problem centres on five information service staff in the control room, who earn between �10,000 and �12,000, and are looking for an increase in pay.

Nexus had said its latest offer was a "generous deal" which focused on increased productivity and substantial salary increases.

'Talks continuing'

Following negotiations at conciliation service Acas, Nexus and Unison have agreed the union will ballot its members on a new management offer.

A Nexus spokesman said: "We are pleased that the industrial action has been withdrawn and talks are continuing.

"No one at Nexus wanted a strike which would have inconvenienced the travelling public of Tyne and Wear."

Jack Pennie, chair of the Unison branch said: "We feel sure that members will support our position but in the meantime we will be pressing management for further discussions on the detail of the offer."