A strike by dock workers at Sheerness dock has been called off after car importers GB Terminals backed down over controversial 'fire and rehire' plans.

The industrial action - which had threatened more than 30 staff at the docks, according to union bosses - was designed to hit the import of vehicles by motor giant the Volkswagen Group, which includes models such as Audi, Porsche and Skoda.

They were arriving in the UK on car transporter ferries to prepare for sales of new 2022-plate cars.

Fire and rehire is a practice which would have seen staff effectively dismissed and then rehired but on new terms. It is understood the dispute among Sheerness workers would have seen changes to minimum overtime payments.

Four days of walk-outs had already taken place.

But the union Unite today announced GB Terminals had stepped down from implementing the proposed changes to contracts.

Unite general secretary Sharon Graham said: “GB Terminals staff beat back the threat of fire and rehire by taking collective action as members of Unite.

“As a union where defending our members’ jobs, pay and conditions is always front and centre, the abhorrent practice of fire and rehire is an anathema that Unite will never fail to stand up to.”

An escalation in the strike action, scheduled for February and March, have now been cancelled, with staff returning to work as normal.

Discussions over potential job cuts are ongoing, but Unite said it was "confident" a solution could be found that will satisfy both the employer and the workforce.

Unite regional officer Phil Silkstone said: “GB Terminals have now taken fire and rehire off the table and we are confident that ongoing talks over job cuts can be resolved without the need for further industrial action."