A pay dispute involving journalists at the Leicester Mercury has been settled.

Members of the National Union of Journalists at the newspaper had voted for strike action in support of their claim for an eight per cent increase.

But a chapel meeting has now decided to accept the company’s original offer of a three per cent increase for the business year starting on October 1, 2007.

Editor Nick Carter said: “I am pleased the threat of action that could have hindered the progress we are trying to make on newspaper sales has been lifted.”

Journalists claimed that a below inflation pay offer left them behind the going rate.

Despite the Mercury chapel voting in favour of industrial action, the union conceded the margin of the vote was not enough to warrant such action.

Out of 44 union members, 35 voted in the ballot, with 21 of those voting for strike action – 21 per cent of the total editorial staff at the company.