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Workers doing jobs like cooking, cleaning and portering at North Devon Hospital have got a pay increase and better work conditions following a two day strike.
The Sodexo employees were promised the same pay and conditions as their NHS colleagues three years ago, but this wasn't done.
Following the strike, and a series of meetings, it has now been agreed to give a salary increase from 1 January 2010, benefits like sick pay, and a lump sum of up to £3,600.