Postal workers have voted not to strike over pay.

Unions had rejected a pay deal but it was announced late on Wednesday that staff had voted against industrial action by a majority of just 1,647.

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

"The Royal Mail is being dishonest by claiming they are offering 14.5 per cent," said 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.

Royal Mail is continuing to lose around £750,000 per day.

Bosses had claimed that contingency services have been put in place in the event of industrial action, under which managers would staff sorting offices.

A protracted postal strike had been characterised as staff "suicide" by Royal Mail bosses.