The threat of industrial action by nuclear power workers on Teesside has been averted after union leaders agreed a new pay deal.

Officials from five unions, representing workers throughout the country, including staff at Hartlepool Power Station, reached agreement with British Energy in talks at the conciliation service, Acas.

The Amalgamated Engineering and Electrical Union, the biggest at British Energy, said the company had improved its pay offer from 1.9 per cent to 3 per cent.

''We are very pleased that the company has seen sense and helped to avert a strike," said a union official. ''There was no need for the unnecessary lengthy procedures in these negotiations and we hope that things can be improved."

Workers will be balloted by December 7 on whether to accept the offer. But British Energy said it was confident that the offer would be accepted.

British Energy runs power stations at Hartlepool, Hunterston and Torness in Scotland, Heysham in Lancashire, Sizewell in Suffolk, Dungeness in Kent, and Hinkley Point, Somerset.