Binmen in Liverpool have agreed to call off a planned 48-hour strike.

A deal was agreed between unions and refuse collection company Onyx during a meeting on Wednesday morning.

It is believed that workers have accepted an increased pay offer linked to improvements in productivity.

Onyx had threatened to sack employees and bring in workers from other areas if the threatened stoppage went ahead.

'No disruption'

A spokesman for Liverpool City Council, which employs Onyx to collect the city's domestic waste, said: "Obviously we are delighted at the news that there will be no disruption to the service.

"We also look forward to the improvements in the service which may come about because of the deal."

The dispute arose after workers in Liverpool, who earn about �6 an hour, discovered that Onyx workers across the Mersey in Wirral earn �2 an hour more.

Liverpool council's chief executive David Henshaw had warned that there must be improvements to the service.

He said: "The workforce has got to understand this can't carry on - it's got to improve.

"If they don't improve the consequences will be severe, we will have to look carefully at our future and contractual relationships with Onyx.

"In the event, if a service is not producing then we will have to look for another provider."