THE threat of a second day of mass industrial action by shipworkers appeared to have been averted last night after five hours of talks brokered by conciliation service Acas.

Hundreds of workers walked out of the Swan Hunter and Amec shipyards in Wallsend, North Tyneside, yesterday morning in support of colleagues involved in a pay dispute.

More than 90 tradesmen working for Jarrow contractors C and D had lost their jobs after three weeks of unofficial action over pay.

Amicus shop steward Ken Rogan, one of the tradesmen, said there would be no pickets at the sites today and workers were expected to go in as normal.

There would be a mass meeting held tomorrow morning at which a new offer would be put to workers.

Mr Rogan said: "The men will be having a vote on whatever Acas can put to them. C and D is putting the offer through Acas."

Yesterday, nearly 2,000 men downed tools in support of contractors who had been working alongside them doing similar jobs for a lower hourly rate - which amounted to as much as £5,000 less per year.

Amicus officials and C and D were involved in talks through the afternoon and into the evening to establish a framework for settling the dispute.

Some workers want C and D to be included in the maritime agreement which guarantees equal pay and conditions for all tradesmen across the Tyneside shipyards, but does not apply to outside contractors.

The chief of Swan Hunter, Jaap Kroese, said earlier yesterday the strike had jeopardised a potential £2.9bn contract to build two aircraft carriers for the Royal Navy.

He said: "I am due to meet with the Ministry of Defence about the carriers contract and was hoping to show we have a workforce with the skills and experience to take on an even greater share of the work.

"Now the workforce has gone on strike and made me look like a fool. Their actions have seriously jeopardised our hopes of bringing more work to the Tyne, which could have created more jobs."

The workers began their dispute three weeks ago and staff at Amec and Swan Hunter, with whom they worked, decided to walk out following a series of meetings yesterday morning.