POPULAR MP Mo Mowlam has stepped in to end an industrial dispute.

The MP for Redcar spent four-and-a-half hours on Sunday negotiating with Redcar and Cleveland Borough Council, trade unions and refuse collectors caught in a deadlock in a row about changes to working conditions.

Last month, the refuse collectors staged two one-day strikes and banned overtime after the council planned to introduce new contracts and changes to working hours which would involve them in working some evening shifts.

But proposals put forward by Dr Mowlam on Tuesday were given unanimous backing at a mass meeting of the two unions, Unison and the TGWU.

And at a meeting of the council's policy and resources committee yesterday, councillors also voted unanimously to accept the plan.

Employment contracts were due to expire yesterday, meaning the refuse collectors would have lost their jobs, but the agreement has extended the deadline for accepting the new proposals until January 19.

Under the proposals, the refuse collectors will accept the concept of working afternoons and early evenings in a 37-hour week.

Councillor Dave Walsh, leader of the council, said: "This is a starting agreement which is capable of being implemented, satisfying the community's desire for improved services while at the same time addressing the concerns of our workforce."

Tim Bush, regional industrial organiser for the TGWU, said: "I hope that this agreement will bring about a resolution to this problem in the interests of the workforce and the wider Redcar and Cleveland community."

Dr Mowlam said: "I thought it was vital to broker a deal before Christmas. I am delighted that both the management and the workforce have accepted my proposals and will move forward towards a lasting settlement.