Threatened strike action by Oxford post office workers has been called off after union bosses and management agreed to further talks.

Plans for a ballot for industrial action which would have caused another round of disruption to deliveries after last year's unofficial disputes have been suspended while discussions continue over the introduction of a new system of holiday leave.

Steve Peck, spokesman for the Oxford branch of the Communication Workers Union, said: "Common sense has prevailed. Rather than us going into battle over what is right and what is wrong, we will put our heads together and produce something workable.

"We are glad we can get on with our job and people's mail will not be affected."

The row centres on a new rota drawn up by managers. Union leaders say their alternative was not considered, which was in breach of an agreement drawn up at the end of the last strike in November.

Top level talks between CWU national officer Martin Collins and Sandy Batho, Royal Mail head of employee relations, have resulted in an agreement to scrap the new management rota and work on a system acceptable to both parties.

Meanwhile, staff are being asked to submit their holiday requests so leave can be allocated by February 20. CWU national spokesman Matt Nicholls said: "Both sides are confident of reaching an agreement. Industrial action has always been a last resort."

Royal Mail spokesman Adrian Booth said: "This is good news for our customers. Strike action is of no benefit to anyone."