Negotiations are to recommence on grading structures at the state industrial agencies - Forfas, Enterprise Ireland and IDA Ireland. SIPTU staff at the agencies, who have been in dispute with management , voted yesterday in favour of reopening talks with management, deferring further industrial action for four weeks.

The 700 SIPTU staff at the three agencies had engaged in a communications black-out last week, refusing to answer telephones and faxes. Selective picketing had been due to start this week. However a meeting of SIPTU staff in Liberty Hall at lunchtime yesterday voted in favour of resuming negotiations.

It is understood that negotiations will now restart between the two sides with an independent arbitrator being put in place to try to help deal with the issues. It was not clear late yesterday who the arbitrator would be.

The dispute centres on grading structures at the new merged agencies under which staff in the same jobs were paid different salaries. The main difficulties were due to the merger to create Enterprise Ireland, formed from the Trade Board and staff of Forbairt.