Employees said the tags were "demeaning"
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A scheme to make workers at a factory wear tags while on a break has been scrapped.
The 84 strong workforce at chemicals company Trelleborg in Leicester claimed they were being treated in a demeaning way.
Managers said the tags were simply a way of indicating when someone is not at work.
Following strike action, the mediation service ACAS was brought in to help resolve the dispute.
Conciliation service
Workers had to ask for a red tag when they wanted to go for a lunch or tea break.
But staff said they did not understand why the tags are necessary, as there had never been a problem with taking breaks in the past.
They took strike action last week and banned overtime and training.
The Transport and General Workers Union asked ACAS to intervene to help find a solution.
On Friday the employers agreed to scrap the tagging system.