A strike involving up to 185 members of staff at the Mercedes Benz Retail Group has been called off.

The four-day strike action at nine sites next week, including Watford, has been cancelled after a new pay package was agreed.

Trade union Unite the Union says members of Mercedes' vehicle technician workforce had voted to strike just before Christmas after facing a second year without a pay rise.

Mercedes confirmed an agreement had been reached this week with 185 workers.

A spokesperson for the motoring group said: "Mercedes-Benz Retail Group has concluded talks, an agreement has been reached and Unite have called off the proposed strike action.

"The inflationary increase agreed is three per cent and there has been a shift in focus from bonus to base salary to retain our industry leading position."

For 2022, Unite says a pay restructuring will see 10 per cent moved from the bonus scheme into contractual basic pay - with a three per cent increase on top of the new basic pay rates.

Unite general secretary Sharon Graham said: "On a day that the rate of inflation reached new highs, this 13 per cent pay increase for 2022 is a significant victory in Unite’s continuing campaign to ensure that our members across the UK don’t fall behind in the cost of living crisis.

"It shows that MBRG, owned by the highly profitable Daimler AG, was well able to dip into its deep corporate pockets, after two years of pay freezes, to fund this package for our members."

Unite regional officer Clare Keogh said: "I would like to thank our members for the solidarity they have shown which greatly contributed to the acceleration from a zero pay offer to one that recognises their dedication and hard work during the two years of the pandemic.

"Unite looks forward to a constructive and positive dialogue with management as we move forward."

Planned strike action between January 25 and 28 at branches in Watford, Colindale, Temple Fortune, Heathrow, Stratford, Brentford, Croydon, Loughton, and Brooklands will no longer go ahead.