Strike action at Oxford Bus Company has been averted after drivers, engineers and office staff voted to accept a new two-year pay deal.

Members of the union Unite haev voted to accept a final pay offer of 1.2 per cent which removed some contentious working conditions opposed by workers.

Although the pay offer was lower than two previous deals offered by the company the Oxford Mail understands employees have secured a guaranteed pay rise for next year of half a per cent above the Retail Price Index measure of inflation.

The company also dropped a condition to put new workers on a lower pay scale for the first two years of their contract which some employees had feared could create a two-tier workforce.

A joint statement issued by the firm and the union said: “Oxford Bus Company and Unite are pleased to announce that, after a decisive ballot, a review of pay and conditions covering the period to the end of 2011 has now been successfully agreed and concluded.”