A series of walkouts due to take place this week by Public and Commercial Services Union members against the threat of redundancy have been called off.
It's after bosses at HM Revenue and Customs offered staff positions at the Department of Work and Pensions base in the city.
Last week, PCS members in HMRC Dundee Contact Centre voted by 183 votes to 7 to take industrial action.
A series of walkout actions, which started with a two hour walkout today, were to be followed by daily half hour walkouts for the remainder of the week.
The contact centre, located in the Dundee Technology Park, primarily takes calls on the HMRC Tax Credits Helpline, where it's claimed there are approximately 300 calls waiting at times. There had been indications that HMRC are seeking to make 38 members of staff, employed on fixed term contracts, redundant.
Further HMRC jobs in Scotland are under threat in Glasgow, Glenrothes, Irvine and Inverness.
In a statement, HMRC said:
"HMRC constantly reviews its operation to ensure that work is done efficiently and effectively. As a result, HMRC has invested in more automated processes which reduce the amount of routine work in some offices, and its different business units have reviewed where they are allocating work. As a result, there is not enough work for the number of staff in some offices and some business units are withdrawing from them.
"Staff employed on a fixed term contract are only ever employed on a temporary basis.
"HMRC remain committed to resolving disputes through dialogue."
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