Three trusts – Dorset HealthCare University, Dorset County Hospital, and University Hospitals Dorset – had wanted to move more than 1,700 mainly low-paid support workers to a subsidiary company, known as a subco.

In a letter to Unison, the trusts said they were axing plans to transfer NHS staff into a subsidiary company.

The union said the change would bring ‘welcome relief' to the Dorset health workers and was also good news for NHS staff in other parts of the country fighting the threat of outsourcing.

Unison general secretary, Christina McAnea, said: ‘The decision by the trusts to halt these plans will bring welcome relief to staff who feared their pay and conditions were going to be worsened.

‘All NHS trusts need to follow this example and immediately halt plans to outsource staff. Those that don't should expect to be met with a wave of opposition and industrial action.'

In response, chief executive of University Hospitals Dorset Siobhan Harrington and chief executive of Dorset County Hospital and Dorset HealthCare Matthew Bryant, said: ‘While we have always committed to protecting NHS pay, terms, conditions and access to the NHS pension scheme for current and future staff, we know our unions do not support the proposal.

‘We put huge value on the work of our staff in these services, and we will continue our discussions with colleagues and unions to find a way forward to provide the most effective and efficient services for our patients.'