UNION officials are to meet management for a second time next week to try to settle a dispute which led to the first strike at a dump truck factory.

Shopfloor workers at the Caterpillar plant in Peterlee, east Durham, have staged 24-hour strikes on the past two Tuesdays, in a dispute over terms and conditions imposed by management, which workers say will lead to a three-year pay freeze.

Previous requests by engineering union Amicus/AEEU to take the dispute to the conciliation and arbitration service, Acas, were rejected by Caterpillar managers who preferred to try to resolve the issue "in-house".

Last Thursday, the company invited regional officials of the union to a meeting at the North West Industrial Estate factory.

Amicus/AEEU regional secretary Davey Hall said the meeting was "helpful" but the divide remains "wide" between the sides. He said a third day of strike action was still planned for Tuesday, with another meeting scheduled with management at the plant the following day.

Frank Siddle, Caterpillar human resources manager, said yesterday: "We have always considered this an internal matter and we have been keen to communicate directly with our employees."

He confirmed that a further meeting would be held at the plant on Wednesday in a bid to make more progress.