STRIKE action at a North-East factory has been called off after union members accepted an improved pay offer.

Employees of Schott Industrial Glass, in Newton Aycliffe, County Durham, staged the first walkout in the plant's 24-year history after failing to reach an agreement with managers.

About 200 members of the Transport and General Workers' Union (TGWU) took part in a two-day strike last month after a meeting with conciliation service Acas failed to break the deadlock.

Talks with the company on the annual pay review have been taking place since last September.

Production workers were holding out for a four per cent pay rise, but the company offered two per cent with conditions.

Workers were already staging an overtime ban and a second strike had been planned when the management tabled a new offer.

Tim Bush, regional industrial organiser of the TGWU, said: "We held a ballot of members and they accepted the company's offer by a substantial majority.

"The dispute is now at an end and the members have accepted the company's offer of four per cent, which was their original claim.

"The members are pleased that the company finally saw reason and agreed their claim.

"However, they are disappointed that the company could not have sat round the table and discussed this at an early stage, rather than prevaricating and ending up with an industrial dispute."

Mr Bush said attention would now switch to repairing damaged relations with managers at the German-owned company, which produces glass for the domestic goods industry, including microwave oven doors and television screens.

He said: "It is the first strike there in 24 years, but there is no doubt it has damaged relationships.

"I hope that the company would learn from this, but I also hope we can now put this behind us and build back the relationship at the plant."