Fujitsu employees cancelled a three-day strike due to start on Friday, after the company agreed to extend talks over pensions and to delay compulsory redundancies.

Talks between Fujitsu and Unite will now continue with the hope of agreeing a resolution, or a way to continue dialogue, by Christmas. The company will delay compulsory redundancies until the same date.

Unite says the company plans to close its defined benefit pension plan to future accruals, reducing the pay packet of 4,000 employees by around 20 per cent.

The union also claims that in total 6,000 staff – nearly half of Fujitsu’s UK workforce – were “at risk” of losing their jobs.

Fujitsu said in a statement today: "Fujitsu is pleased that the action planned by Unite has now been averted and we hope that our further discussion will resolve the situation."

Unite is still entitled to call industrial action if it feels discussions are not progressing.

Nobody from the Union was available to comment on the developments this morning.

Fujitsu announced 1,200 redundancies in August, and also has a pay freeze in place for all staff.