Postal workers have snubbed union leaders by voting against a strike over pay.

Unions had initially rejected a pay deal but staff voted against industrial action by a majority of just 1,647.

Management argued their deal was worth 14.5 per cent - a claim the Communication Workers Union rejected.

"The Royal Mail is being dishonest by claiming they are offering 14.5 per cent," said CWU deputy general secretary Dave Ward.

"If that was the case, the union would be biting their hand off."

Talks continued between union officials and company bosses on Wednesday.

The breakthrough, which comes along with 4,500 redundancies, averts the first national postal strike for seven years.