A PLANNED second day of strike action by production workers at the British American Tobacco factory in Southampton this week has been called off.

Both management and Amicus union representatives are to have peace talks over the pay dispute.

A condition of those talks is the suspension of industrial action on Wednesday.

Up to 400 Amicus members at the factory, which employs 1,200 people and is said to generate £70m for the local economy, want a three per cent pay rise over one year, followed by a three per cent pay rise for the second.

The company says it is offering 2.6 per cent for the first year, and says the second-year figure is acceptable.

A 0.4 per cent pay rise for operators on a basic salary of £23,227 at the factory in Millbrook amounts to £1.78 a week, or £1.98 for technicians on £25,776 or £2.18 for a fitter on £28,327.

Last Wednesday's 24 hour strike was the first industrial action in 22 years.

The factory produces international brands for export, such as State Express 555, Dunhill International, Rothmans Royals, St Moritz and John Player Gold Leaf.