The Unite trade union has called off a scheduled bus strike so that talks can continue over Olympic bonuses with bus companies and Transport for London. The union is trying to secure a guaranteed £500 in extra pay for every bus worker in the capital who agrees to turn up for work during the event.

Unite is arguing that the deal would be in line with agreements already in place with other transport staff. However, Transport for London is adamant that because bus drivers and workers are employed by private companies, Unite members needed to take up the argument with company bosses and not TfL.

Acas’ chief conciliator, Peter Harwood, said that he was pleased to be able to announce that disruption had been averted by the cancellation of this week’s strike. He added that the legal action started by some of the bus companies to prevent the walk out going ahead had also been abandoned.

Leon Daniels, head of surface transport for TfL, said an offer had been made to share any extra revenues made from bus ticket sales during the Olympic Games with workers. He added that he hoped this would stop the accusations that TfL aimed to make a significant extra amount of cash through the buses during the event.

Mr Daniels added that a share in the revenues would be added to a bonus pot of £8.3 million already put up by the Olympic Delivery Authority and the additional funds already offered by the bus operators.