Employees at EBS building society have ended industrial action after backing a deal reached last week with management at the Labour Relations Commission.

Staff represented by the Unite trade union voted overwhelmingly in favour of the plan, which will see staff directly paid half of a disputed 13th-month payment, with 94 per cent backing the move.

Under the agreement, the EBS will also pay €4.8 million into the staff pension fund, and has given undertakings to stick to normal industrial relations procedures while the staff are merged with Allied Irish Bank.

"This was a dispute which our members were determined to undertake," said Unite regional officer Colm Quinlan. "Employers have too often used the difficult times in which we live to make changes to workers pay, terms and conditions that are unreasonable and based on opportunity rather than a genuine business case."

Workers took action after it was discovered that the 13th-month payment traditionally made to staff in December would be withheld. The equivalent of the payment was made to management at the company.