The NUJ has announced it has reached an agreement with the Guardian and Observer as compulsory redundancies have been withdrawn.

Negotations will take place to agree upon cost cutting measures

A 12-month long negotiation process will now take place between the union and management to bring about necessary cost cutting measures, all future staff level reductions will be agreed upon within the negotiations.

"I am pleased that the hard work put in by both sides has achieved an outcome that should create the positive climate necessary to safeguard the future of the titles and at the same time guarantee the quality of content so vital to their success. It is essential that the digital coupled with an affordable print version is based on the highest standards of journalism and a positive engagement with their readers," commented NUJ deputy general secretary Barry Fitzpatrick.

The NUJ and Guardian News and Media will now discuss a revised house agreement exchanging proposals with a view to reporting back to the chapel and staff in three months’ time.

Salary recommendations from the HR department will be implemented by the company on 1 April 2013 following the works of the pay audit group. Voluntary redundancy requests will still be considered by Guardian News and Media in order to manage the restricting of the staff and organisation. The company will use the redeployment agreement as part of the process.

A Guardian News & Media spokesperson added: "We have reached an agreement today with the NUJ, which is good news for our journalists, our partners and our readers. Working constructively together, we're confident we can all achieve our stated goal - a long-term, sustainable future for the Guardian and its quality journalism."