The union's 720 members working on contracts for DVLA, HM Revenue and Customs (HMRC), the Home Office, Ministry of Defence and Office of National Statistics, had planned to carry out a with members of Unite union on Monday 19 September. Unite members are still going ahead with the strike, which is over a dispute concerning the sacking of union representative Alan Jenney, and will involve staff at Fujitsu's Manchester and Crewe offices.

PCS members had planned to strike over a below-inflation pay offer (of between 1.5 percent and 2.5 percent) which it had branded an "insult" to Fujitsu's lowest-paid workers.

However, Fujitsu has now offered PCS members a pay deal that is more than twice the rate of inflation.

The lowest-paid staff will now receive a basic 11 percent increase, and everyone on £20,000 or less will receive more than 2.5 percent. The pay rises will be backdated to 1 August, with an additional £500 compensation paid to those whose pay date was before 1 August.

In addition, all staff earning less than the 85 percent of the median for their grade will be moved up to the median, and a structured progression system for staff will be implemented at the two sites where the majority of low-paid staff are based.