Staff at IT services firm Fujitsu have agreed to accept an improved pay offer, following a series of strikes in a long-running dispute.

The new agreement gives staff better pay and more secure pensions, said the Unite trade union, while resolving a heated issue of union rep Alan Jenney, who had said he was victimised by the company.

Twelve staff in Manchester who failed to receive a pay rise on 1 August will receive whichever is greater out of a one percent salary increase or £225 extra. A further 768 will receive a £29 increase.

Staff in Manchester and Crewe will see their defined contribution pensions being more protected, after an agreement that Fujitsu would not be able to change the terms without first substantially changing their employment contracts. Fujitsu has also committed to create a consultation body that will establish terms of reference for its main pension scheme.

Unite said it had resolved its concerns around representative Alan Jenney, whom it had said was victimised by the company. However, the trade union declined to reveal the agreement reached.

Following the deal being signed, the Unite trade union said it was ending industrial action from its members based at the company. Fujitsu said in a statement that it "welcomes" the agreement.

As part of an important clause, Unite representatives at Fujitsu will be allowed work time to deal with employee issues, in any site across the country - potentially expanding the union's reach in offices where it is not represented.

Kevin O'Gallagher, national officer for IT and communications at Unite, said the agreement "reflects a significant improvement in relationships with the company", and would help limit future conflict.

"It means better protection for pensions for Fujitsu employees across the UK and pay rises for most Manchester staff."