The home secretary's move, at the request of the firefighters' local authority employers, is expected to lift the threat of strikes in Greater Manchester, West Yorkshire and London and end attempts by fire authorities to make unilateral local changes to conditions.
The inquiry, to be headed by an industrial relations academic, is expected to report by next Easter. Mr Straw's announcement was welcomed by both sides in a dispute that looked as if it might lead to the first national fire strike for 22 years.