A union which represents workers at Portugal’s Galp Energia said a three-day strike at the company’s two refineries had been called off.
The strike action had been planned to start midnight on Sunday.
A spokesman for the union, Fiequimetal, said the decision was taken after the government agreed minimum services had to be maintained at the refineries.
The decision prevented workers from stopping any refinery units.
The spokesman said: “We expect to overturn the government’s decree, which effectively denies workers their right to strike, in court and will call a new strike later. On December 30 there will be a meeting to decide on a plan of action for January.”
The walkout was initially called in a bid to protest against Galp’s move against collective hiring and to also demand higher salaries.
Galp currently operated two refineries in Portugal.
One in Matosinhos in the North and one in Sines in in the South of the country.
