Rail and Maritime Transport Union organiser John Kerr, of Lyttelton, said Dunedin Railways management yesterday withdrew the warning it gave an employee last week.
"The issue was one that we could not ignore and management eventually saw our point of view.''
The union was looking forward to rebuilding the "successful and productive'' employment relationship that had been in place before this dispute, Mr Kerr said.
The dispute was about Dunedin Railways management issuing a verbal warning and threatening disciplinary action to a staff member for filing a health and safety incident report.
The report was on the simultaneous sharing of a track by a train and a high rail vehicle - a "jeep'' able to drive on the road or rail, Mr Kerr said.
The employee was concerned the incident had not been logged correctly and could potentially have caused a collision, Mr Kerr said.
Contacted yesterday, Dunedin Railways chief executive Murray Bond declined to comment on the "legal matter''.
