TANKER drivers at Scotland's only oil refinery have called off strike action after settling a dispute with BP over cuts to workers' pay and pensions.

The Unite union said that after fresh negotiations, the oil giant would now recompense tanker drivers who stood to lose up to £16,000 a year on their pension value and £1400 a year on their basic earnings as a result of an imminent aviation contract transfer to DHL.

Over 40 drivers at Grangemouth had already taken 72 hours of strike action since last Friday and further strikes had been planned from today.

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The dispute centres on the imminent transfer of a lucrative aviation contract from BP to DHL, resulting in one-third of workers losing money from their pension on retirement. It would also have seen two-thirds losing upwards of £1400 a year from their earnings due to a salary sacrifice through BP's share-match scheme.