THE arrival of the festive season has failed to bring a thaw in the long-running pay dispute at BPI's Stockton plant, as unions announced further strike action to begin in the New Year.

Union officials are following up three days of strikes this month with two 24-hour walkouts on Monday, January 3, and Saturday, January 15.

An overtime ban is still in place at the site in Yarm Road.

Bosses at the plastics factory, also known as Visqueen, are still refusing to bow to workers' demands for a three per cent pay rise, saying they cannot afford the increase because of adverse trading conditions.

Managers met union officials last week at the conciliatory service Acas, but talks once again failed to break the deadlock between the two parties.

Workers have already refused an offer of 2.8 per cent - 0.3 per cent of which would be self-financed.

About 170 workers have taken part in the walkouts, believed to be the first in the plant's history.

Some of the workers on the picket line this week were dressed in Santa Claus outfits.

BPI bosses said the industrial action was undermining the competitiveness of the business.

Managing director Steve Moss said: "As previously stated, continued strike action will damage our position as a business in a very competitive market place and only assist our competitors."

However, union officials said the company was losing support from its workforce and its customers by its refusal to meet the three per cent rise.

Joe Keith, from the Transport and General Workers Union, which represents the majority of staff at the site, said: "This dispute has cost them a great deal in terms of goodwill, both from customers and from their own workers.

"Just in financial terms, the loss of production at the site must have had a big impact. They could have saved themselves all this if they had met worker's pay demands in the first place."

Mr Keith said there were no more meetings planned with management before the new year strikes.