Fujitsu has suspended the 42 compulsory redundancies due last Friday until the end of February as mediation talks continue.

A spokesperson for Fujitsu described the move as a "gesture of goodwill".

The Unite union has been in talks at the Advisory, Conciliation and Arbitration Service (ACAS) since 1 February to resolve issues around pay, redundancies and pensions at Fujitsu.

The union members also cancelled a strike yesterday (Monday 8 February) in order to facilitate the talks.

Last week, union members had asked Unite to call a further strike day for tomorrow (Wednesday 10 February) if Fujitsu had gone ahead with the redundancies on Friday.

In total, Fujitsu initially planned 834 redundancies, 586 of which were voluntary.

Over the last two months, the dispute has become increasingly bitter, with the company seeking to bring costs down to what it claimed were those of its rivals. The union, on the other hand, has said the company is highly profitable and accused it of using the recession as an excuse to drive down staff terms and conditions.

This has culminated in two series of strikes, and a high-profile lobby of parliament.

The union has also posed questions over whether Fujitsu was discriminating against women and staff from ethnic minority backgrounds in its choice of those targeted for redundancy. Fujitsu strongly rejects any question of discrimination and said it always acted in the interests of equal opportunities.

The strikes targeted work on a number of high-profile contracts, including with Marks & Spencer, Vodafone, the Home Office, HM Revenue & Customs, the Financial Services Authority, and the Post Office.