STRIKE action at a North-East rig-building plant was averted last night after settlement was reached between managers and unions over pay.

About 130 workers at the Hereema site, in Hartlepool, were due to take part in the industrial action today after three months of wage negotiations at the plant broke down two weeks ago.

But last night, after eleventh-hour talks, an improved pay deal was secured for workers at the plant, in Greenlands Road.

Heerema's original offer of a two-year deal with a 3.5 per cent annual pay rise was revised to a one-year deal with a 4.2 per cent wage increase, backdated to the start of the year, which was accepted by unions.

A revision of overtime rates was also negotiated, with workers offered time-and-a-half and double-time.

Jimmy Skivington, regional organiser of the GMB trade union, said: "This is a good deal for a very valuable, highly-skilled workforce, and is no less than they deserve. "

Today's strike was due to involve pipe-fitters, welders and platers at the site, and was to take place after they voted overwhelmingly in a ballot last week to take continuous strike action until a settlement was reached.

After the outcome of last week's ballot was announced, managers at Dutch company Heerema, which designs, builds, transports, installs and removes offshore facilities for the global oil and gas industry, asked for further meetings with unions, and offered the improved deal yesterday.

Mr Skivington, who led union negotiations at the site, told The Northern Echo: "After a meeting with the company, and quite a lengthy meeting with our members to discuss the improved offer, it was decided that the new offer should be accepted.

"We have a one-year deal, which is a good deal for the members, and have also managed to restore the premium overtime rates (to) the original payment rate of seven years ago.

"We are very happy with the settlement for the members, and are also very happy we have managed to avoid strike action."