A PAY dispute in which more than 200 workers walked out of a Queen's Award-winning manufacturing plant has been resolved.

Production at the Davy Roll Company, in Gateshead, was brought to a standstill last month when employees went on strike over disparities in the company's bonus scheme.

It was said that 67 out of the 288 people at Davy Roll had not received the three per cent bonus paid to the rest of the staff since 2001.

About 200 workers staged a walkout and refused to work overtime in protest. However, it was revealed that the dispute has now been settled, with a 1.6 per cent increase on bonus payments being secured, back-dated to October last year.

Bill Green, a regional officer for the Amicus section of the Unite trade union, said the dispute had been settled to the satisfaction of the workforce, and the plant was now operating as normal.

The company was given a Queen's Award for Enterprise earlier this year in tribute to its resurgence since 2003, when the company warned of an uncertain future after orders dried up.

Since then, turnover has increased from £16m to £48m, and the company has made significant inroads into international trade, and fears were raised that the industrial action could affect productivity.

Mr Green said: "The company met with shop stewards over this dispute, and have come to an arrangement which meant the industrial action was terminated.

"They have got an improvement of 1.6 per cent on their bonus pay, backdated to October last year, which the members have accepted.

"The company is now working as normal, and the members seem happy with the resolution that has been reached."

Davy Roll, which makes cast rolls for hot and cold strip mills, medium and heavy section mills and plate mills, in several iron and steel qualities, trades from its plant at Close Works, in Gateshead, and has been there since 1970, when the firm was formed.