An increased pay offer was made to postal workers during talks yesterday to avert a strike, it has emerged.

But the new two-year offer was rejected by the Communication Workers’ Union.

Posties began their two-day strike at 5.30am this morning after yesterday’s talks failed to break the deadlock in the dispute over planned changes to pay, terms and conditions and service levels.

With no breakthrough again today, there will be no further talks until the new year, union boss Terry Pullinger said.But he also announced that after tomorrow there will be no further strikes before Christmas.Those on the picket line said there had been pretty much a full turn-out for the walk-out by CWU members.And in icy conditions, they said there had been strong support from members of the public who had given warming cups of coffee to the strikers while passing motorists had beeped their horns.The new proposal includes an unconsolidated lump sum of £200 on top of the 1% increase on basic pay, backdated to April, which had been previously offered - and a 2% increase in pay next year.

This offer is subject to union agreement to the implementation of job evaluation.

After the two years, annual pay awards for all staff will continue to be negotiated through the current collective-bargaining mechanism.

The Post Office management also gave an assurance that basic pay for all current employees will be not be reduced by job evaluation.

A Post Office spokesman said: ’I can confirm that IOMPO amended its offer to staff during yesterday’s negotiations but this was rejected by Mr Pullinger and other CWU representatives attending the meeting.’Union boss Mr Pullinger confirmed that after tomorrow's strike there will be no further industrial action until after Christmas.He said: 'We were never about trying to ruin people's Christmas.'He hailed the 'massive turn-out' on the picket lines by union members.Mr Pullinger said there were a number of issues with the revised pay offer that meant a reduction in postal workers' pay including the move from six to five day deliveries and removal of allowances.