Crisis talks between a tram workers' union and operators have averted industrial action.

Croydon's tram service was set for a weekend of disrupted service after pay talks between the tram workers union, Transport and General Workers Union (TGWU), and operators, First Group, broke down.

However, it emerged this evening that members of the TGWU had agreed to postpone the strike, scheduled for August 11, 12 and 13, until further discussions next Tuesday.

A spokesman for First Group said: "It is understood the union have got in contact with us and said they will call off this weekend's strike until the conclusion of a meeting next Tuesday."

If a suitable compromise cannot be negotiated at next week's showdown talks the TGWU could set another strike date.

A further strike was scheduled for September 10, 11 and 12.

The news will come as a massive relief for Tramtrack Croydon Limited (TCL), the firm who manage Croydon's tramlink service, as the strike would have caused major disruptions for commuters during the busy weekend period.

Tramtrack had arranged for a replacement bus service and peak hour only services to run between East Croydon and Wimbledon.

The strike relates to a recent TGWU ballot which saw 57 per cent of tram drivers vote in favour of strike action over a dispute related to revised salaries for staff.

It is understood employees are seeking a 15 per cent increase in pay - while First Group, who operate the Tramlink service on behalf of the concession owners TCL, consider a 5 per cent increase as "reasonable" and "favourable with the rate of inflation."

Steve Linger, TGWU representative for tram employees, insisted workers do not want to strike but felt it could be their only option.

"We've been trying to resolve this issue for nine months and we've had little or no co-operation from First Group. This is an issue dating back to 2005 and we've been trying to get on and push them to come to an acceptable outcome but it hasn't happened.

"Of course the employees do not want to strike but they may not have another option.