A PLANNED strike by Cale-donian MacBrayne ferry workers has been called off after its contract to run west coast services was extended by three years, the company has confirmed.

The Rail, Maritime and Transport (RMT) union had threatened to strike over fears the network of publicly-subsidised routes could be broken up and offered to private companies.

Following an announcement last week that CalMac's contract, which was due to expire next autumn, has been extended until 2016, the RMT said it was no longer in dispute with the firm. Transport Minister Keith Brown said it was "heartening" that the dispute was over.

A CalMac spokesman added: "We welcome the resolution of the dispute and look forward to working with the RMT and other partners to prepare the company for a successful bid for the next CHFS contract in 2016."