Royal Mail and postal workers have agreed a deal to avoid a repetition of the postal strikes which crippled Oxfordshire businesses earlier this year.

Managers at Royal Mail and leaders of the Communication Workers' Union (CWU) have extended a 'breathing space' deal, struck last month, which led to a sharp fall in industrial action.

Under the latest agreement, the CWU has agreed to suspend any ballots for industrial action and Royal Mail has agreed not to press ahead with any changes to working practices at local level.

The national agreement lasts until October 12, but both Royal Mail and the CWU say they are determined to take it beyond that date.

The agreement represents a significant step towards avoiding strikes for a lengthy period. A joint approach to resolution was a key recommendation in the recent Sawyer report on industrial relations.

Mick Linsell, Royal Mail's managing director for service delivery, said the initial agreement on industrial stability had been a major reason why August experienced one of the lowest number of days lost to strikes for more than a year.

He added: "Customers have benefited from improved quality of service, and the improved industrial stability has been good for employees.

"Royal Mail will continue to work to achieve the goal of a strike-free business."

John Keggie, the CWU's deputy general secretary for postal matters, said: "The experience in August has shown that when local managers and CWU officers are encouraged to resolve differences, they can often reach agreement in the interests of employees and customers."

Last month, across the UK, there were 25 disagreements between Royal Mail and postal workers, which were successfully resolved using the 'breathing space' deal. Unofficial strike action in February disrupted postal services in Oxfordshire for weeks.

This year postal workers have also taken strike action in Liverpool, Glasgow and Cardiff.