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HP managers will be celebrating this morning - a threatened two-day strike by 1,000 members of the Public and Commercial Services union has been cancelled.

The industrial action was due today and tomorrow (Tuesday) but has been suspended to allow talks to continue.

Jim Hanson, PCS national officer for HP, said progress had been made and talks would resume on 30 March, after which the union would review proposed action for 6 and 7 April.

The full statement is here.

The dispute over pay and job security has been going on since HP bought EDS.

The main contracts likely to be hit by strike action were with the Department of Work and Pensions, the Ministry of Defence and General Motors. ®

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