COUNCIL workers preparing to strike next Wednesday in protest over pay have called off their action.

Gwent was preparing for a second 24-hour stint of industrial action by council workers fighting for a six per cent pay increase. A three per cent rise was on offer.

The first strike took place on July 17 and council services across Gwent, including refuse collection, were disrupted for the day. But it was announced last night trade unions had agreed to suspend planned strikes following two days of talks.

Representatives from Unison, the GMB and the Transport and General Workers Union are trying to negotiate a settlement.

The unions and local authority leaders last night agreed to review recommendations from Acas after meeting at the conciliation service's headquarters in London.

Pam Baldwin, Caerphilly's Unison representative, said: "We're delighted low pay in local government is being eradicated. Come 2003 they will all be paid over the minimum wage, which is brilliant. This vindicates us in having the all-out day of action on July 17. I want to thank members of the public for their support."

The recommendations would see: * A two-year pay deal with increases ranging from 7.7 per cent to 10.9 per cent for the lowest paid;

* If accepted, all council workers would receive a three per cent increase with a new minimum rate of £5 an hour from April 1 2002;

* This will be followed by a one per cent increase from October 1 and another one per cent rise for the two lowest pay grades.

* From April next year, council workers will receive a 3.5 per cent pay rise and an additional one per cent for the lowest paid.

* It means from April 2003, the lowest paid council workers will receive £5.32 an hour compared to the current £4.80.

Talks began at Acas last Friday between representatives from Unison, the GMB and the Transport and General Workers Union and the employer's organisation, which was representing local authorities.

Members will now be consulted on whether to accept the Acas recommendations - a move likely to last six weeks. Meanwhile, industrial action has been suspended.

A joint statement on behalf of the three unions said: "The Acas proposals are the result of many hours of tough negotiation.

"We believe that the proposals represent a fair deal for local government employees and a strong platform to end low pay and unequal pay."