Fire strikes suspended as talks resume

Firefighters' leaders suspended further strikes until further notice yesterday, raising hopes that a settlement to the five-month dispute is in sight.

The Fire Brigades Union (FBU) said negotiations with employers would resume next week at the conciliation service Acas. The breakthrough came after John Prescott, the Deputy Prime Minister, held talks on Monday night with FBU leaders and employers.

The union executive decided to call off fresh strikes after it received a three-page fax from Mr Prescott's office. Andy Gilchrist, the FBU leader, welcomed the "first constructive intervention from the Gov- ernment", which would enable "constructive negotiations to begin". But the union made clear that the strike option had not been abandoned.

Mr Prescott reassured the union that fresh talks could take place with nothing ruled in or out. He also softened his insistence that the FBU accepted the Bain inquiry's demands on modernisation before negotiations could start again. His threat to impose a pay settlement has been suspended while talks continue.