THE deadlock between bosses and workers on the Tyne and Wear Metro system looked to have been broken last night.

Four unions representing staff on the light rail network have been engaged in a long- running dispute over pay and conditions with Metro operator Nexus.

One of the unions, Amicus, is considering calling off industrial action involving 170 Metro workers that was scheduled for Saturday in the form of an overtime ban.

Bill Green, of Amicus, said: "The talks have been very positive."

The dispute has been running for more than two years and has involved the unions calling a series of one-day strikes.

Ken Mackay, Metro director, said last night: "We are pleased that our passengers should not now face any further disruption and that our Metro staff will enjoy a good pay deal and improved terms and conditions."

After extensive negotiations, the trade unions and Nexus have agreed that employees will receive a 5.7 per cent pay increase.

This will be broken down into 2.7 per cent, backdated from last October, with a further rise of three per cent from this October.

In exchange, union bosses have backed down in their demands for a 35-hour week, and have agreed to 36 hours.

Stan Herschel, of the Rail Maritime and Transport Union, which represents about 280 Metro workers, said: "I am hopeful that, after long drawn-out negotiations, we are in a position where we can recommend an offer."