EFFORTS to resolve the first deadlocked pay negotiations in Nissan's 18-year history in the North-East will resume this week.

The Japanese motor manufacturer has failed to reach agreement with its 5,000-strong workforce on Wearside three weeks after the deal was due to come into force.

Workers' representatives on the ten-strong company council are believed to have called for a six per cent pay increase to cover the years 2003-4.

Staff are also said to be seeking flexible working hours and a cut in the working week as part of a general improvement in terms and conditions.

But the company's pay offer, believed to be in the region of a 2.5 per cent increase, is said to fall "well short" of employees' demands.

Despite the intervention of the conciliation service Acas, which made its first visit to the site on Friday, talks broke up without a conclusion.

The Amicus AEEU union, which represents about one-fifth of the workforce, is unhappy its regional representatives have not been called in to take part in negotiations, now said to have dragged on for six weeks with the company council.

Mel Barras, Amicus AEEU regional official, said he did not believe Nissan or the company council have made any moves to call in full-time union officials to try to resolve the dispute.

Nissan spokesman David Swerdlow said yesterday the negotiations were still subject to "company procedures".

"Because of that, there's no reason to suggest we are still not going to reach an agreement," he said.

"Acas is still involved and no time limit has been imposed on the conciliation period.

"We'll keep Acas for as long as it takes. It's in everyone's interests."

Continuing deadlock in the talks blighted a week in which the new generation Wearside-built Micra was given its European launch at the plant.