Strike action at Cemex has been called off after the company agreed to a package of measures that will increase drivers' annual salary.

An ongoing dispute over pay turned into the threat of a 24-hour strike on 26 May after 82 drivers returned an 87% vote in favour of downing tools at the concrete and aggregates firm.

The Unite union said industrial action would affect major construction projects, including those at Heathrow and the Mersey Gateway Project.

But following further negotiations, the union said its members had accepted a renewed offer.

It included basic salary payments to be increased by 1.6% from 1 July 2016, all site location allowance payments to be increased by the same amount and a written confirmation that the location allowance will not be withdrawn in the future.

A joint statement from Cemex and Unite said: “Both parties have been committed to and worked together to reach an agreement.

“The agreed offer consists of seven parts, which include not only an increase to annual salary, but also better terms for the location allowance and the promise to work with the unions to look at how we can improve other conditions.”