Members of the GMB and Unite trades unions working for TG Tunnelling will now receive a payment to cover tax they were incorrectly charged last year.
More than 100 tunnellers working on a Balfour Beatty contract at Hinkley Point C had been set to go on strike today.
However, they have now accepted their employer’s settlement, with 93% of GMB members voting in favour.
GMB organiser Tim Northover said: “GMB members have accepted an offer which means they will not be out of pocket. As a result, today’s strike has been cancelled.
“Hopefully we will now have time to resolve the wider issues around the dispute in good faith.
“We retain the strike mandate and won’t hesitate to set further dates for industrial action, if necessary.”
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