POSTAL workers threatened to strike in April following a row over pay.
It followed a public sector pay freeze which was set out in the Budget speech in 2010 and again this year.
Members of the Communication Workers' Union voted in favour of 24 hour industrial action following the row.
The Isle of Man Trades Union Council (IOMTUC) which represents workers in the public and private sector in the Island backed the strike action.
Andrew Shipley, the vice president of the IOMTUC, said: "We understand the need to protect jobs – my own union the ATL has been involved in redeployment and redundancy already within the public sector over the last few years and it is not pleasant.
"However the attitude of Isle Of Man Post is pretty poor given the offer of binding arbitration from the CWU. The situation is not helped by the approach seemingly being adopted by politicians of standing back and letting things happen.
"The political response is especially questionable – over how many more issues are we going to see politicians sit in their 'ivory tower' whilst the rest of the Island struggles on the ground to solve the issues we are now facing. It's simply not good enough."
The then chairman of the Isle of Man Post Office called the planned strike action a "damaging cause of action".
Alan Crow MLC said: "It seems that the CWU has been determined to pursue this damaging course of action from the very outset, having first threatened this in June 2010 before the first discussions with management ever took place, causing uncertainty for our customers and staff ever since.
"The CWU position throughout all of the talks is to have new money added to pay and this is impossible with the current freeze on public sector pay budgets in place. This is a clear indication that it fails to grasp the financial situation the Island and government is facing."
Mike Kelly, the chief executive of the Post Office, said: "We understand and appreciate that a pay freeze is difficult for all our staff to accept however we continue to urge our staff, who are CWU members, not to strike regardless of the way they voted. Such action will only damage the business, customer and public support and jeopardise jobs. It will not change the government's policy of a freeze on public sector pay budgets."
The planned strike was due to involve up to 269 members of staff and take place on Tuesday, April 12, however it was called off following talks between the Isle of Man Post Office and the Communication Workers' Union.
Mr Kelly said: "We have worked hard with the CWU to arrive at this position. As a result the CWU will be technically validating their ballot at another time and in a way which will not impact on services to the public and business customers.
"Both parties recognise that future talks will still have to overcome some difficult challenges however we are confident both parties are now committed to finding a solution."
Update: In September the Post Office reached an agreement over a pay increase for workers. For more on this click here.
This story is part of isleofman.com's Review of the Year 2011.