Unite tanker drivers at Scotland’s only oil refinery in Grangemouth have called off industrial action after settling their dispute with BP.

The drivers had already staged a three-day strike, and were due to begin a four-day stoppage on Thursday February 28.

Following negotiations, the oil company will now recompense tanker drivers who, Unite said, stood to lose up to £16,000 a year on their pension value and £1,400 a year on their basic earnings as a result of an aviation contract being transferred to DHL.

The workers, who will transfer shortly from BP to DHL, will receive the full value of the BP share-match scheme as an indefinite monthly payment. Deals have also been agreed to cover losses to pensions as a result of the contract transfer.

Unite industrial officer Tony Trench said: “This is a magnificent result for our members who were resolute in their pursuit of pay and pension justice from BP - a company that raked in nearly £8bn in profit last year – and firm in their collective belief that no worker should have to endure financial loss as a result of a transfer of employment.

“We’ve faced down the fourth biggest company in the world over the basic principle of fairness. We said from the outset we were always prepared to negotiate and that, after Friday’s 72 hour strike action, the ball was firmly in BP’s court to end the dispute by doing the right thing. It has done the right thing.

“Today’s outcome should also send out a message to workers and employers across the industry: There is power in a trade union and this union - Unite - will fight back against any attempts to cut our members’ hard fought terms and conditions.”