District Health Board workers across New Zealand are withdrawing threats of strike action over pay disputes which would have affected more than 400 Bay of Plenty staff.

The Public Service Association today announced it is withdrawing notices of industrial action covering 12,000 health workers at DHBs after progress was made in mediation.

Details of the settlement are not being released as PSA members are yet to be informed.

Earlier this month health workers voted in favour of taking strike action after rejecting an offer of a 0.7 per cent pay rise by District Health Boards.

In the Bay region 374 workers voted in favour of an overtime ban and walking off the job for two to three hours at a time, over three weeks starting late this month.

The workers nationwide include mental and public health nurses, physiotherapists, anaesthetic technicians, dental therapists, administrative staff and other occupational groups.

PSA national secretary Richard Wagstaff is pleased an improved offer from the DHBs has been negotiated.

'This new offer will mean more money in the pocket for our hard-working members, and real progress on some of their other key issues.

'Our members take patient care seriously, so the DHB agreement to increase engagement on learning and development is particularly welcome to improve the standard of care.”

Employment Relations Strategy Group chairman Graham Dyer says the mediation has been undertaken by both sides in a professional manner.

The 20 DHBs reached a settlement on five Multi Employer Collective Agreements with the Public Service Association for mental and public health nurses, allied, public health and technical staff, and clerical workers nationwide.

"The PSA team was most constructive. Our employees will now be consulted on the settlement and we hope they vote in favour,” says Graham.

Organised meetings to discuss the offers and vote on them across the country will be held in the coming weeks.

'As a democratic organisation, our 12,000 DHB members covered by these proposed agreements will have the final say over this decision,” says Richard.

'Industrial action was a last resort after months of bargaining, and we are pleased sufficient progress has been made that we can take that option off the table.”