WORKERS at energy firm Npower have stepped back from industrial action in a dispute over pay and conditions.

Following a union ballot staff at the company's call centres in Newcastle, Gateshead and Thornaby decided to continue talks with management rather than take action.

Their union Amicus claims call centre operators have been asked to take a 25 per cent cut in their £13,000 a year wages, but this has been denied by Npower.

About 700 staff work at the three call centres, although not all of them took part in the ballot.

A spokeswoman for Npower said a "substantial majority" had voted for union representatives to continue talks.

She said: "We are delighted that our employees have given their representatives the mandate to continue talks with us.

"What we have put forward are initial proposals and the next natural step is to sit down and discuss these with our employees and their representatives.

"We have certainly not proposed a 25 per cent pay cut across the board, as is being reported, but until we have had the opportunity to sit down and discuss the details with employees and their representatives we don't think it would be proper or fair to make any more details publicly available."

In August, Npower's parent group Innogy took over the billing side of Northern Electric and Gas, which saw Northern acquire Innogy's electricity distribution business. The deal led to fears that job losses would follow.