A DISPUTE over pay at a North-East factory has been resolved.

The 150-strong workforce at Hydro Aluminium Extrusions, in Birtley, near Chester-le-Street, County Durham, has accepted an improved pay offer following 12 days of industrial action.

Dave Telford, the Amicus union's regional officer, said: "Workers suspended industrial action during negotiations with management last week and an improved offer was accepted."

The dispute at Hydro had rumbled on since July, with workers rejecting three pay offers from the company, the second of which was lower than the first.

Conciliation service Acas had been involved in negotiations, but by the beginning of the month talks had failed to break the deadlock between the two parties and the first 24-hour walkout was staged on December 1.

Workers vowed to strike every Tuesday and Thursday until a pay deal was reached.

At the time, Sandy Rollo, Hydro's corporate development officer, issued a statement saying that the dispute would not cause disruption to customers.

"It is business as usual for our customers," he had said.

Mr Rollo was yesterday unavailable for comment.

The Birtley factory was set up in Durham Road in 1976 as Century Aluminium and was acquired by Norwegian group Norsk Hydro, in 1986.

Norsk Hydro is the UK's leading supplier of extruded, machined and surface-finished aluminium extrusions.

Its petrochemical division, Hydro Polymers, employs 400 people at a plastics factory in Newton Aycliffe, but this plant was not connected with the strike or pay dispute.