Industrial action planned to take place tomorrow at the Michelin tyre factory in Staffordshire has been suspended following a "positive" meeting with management.
The Transport & General Workers Union has agreed to hold back on the planned work to rule for seven days.
If no agreement on the pay offer can be reached, the industrial action will go ahead on March 11.
A planned demonstration will also be postponed.
Margaret Armstrong, T&G regional industrial organiser, said: "The company has for the first time since this dispute began demonstrated a willingness to find a negotiated settlement with the union.
"We have started to discuss the foundations of an agreement which we believe we can build upon.
"The union has therefore agreed to a seven- day suspension of the planned action to allow discussions to continue.
"Michelin have a window of opportunity now to avert action. The T&G will do all we can to find a negotiated settlement, but the company must be in absolutely no doubt that if no agreement is reached in the next few days our
members will have no hesitation in taking action."
Ms Armstrong confirmed that mass meetings would be convened at the Stoke site early next week and members would be balloted on any new offer.
The planned action involved a ban on overtime and a work to rule, and withdrawal from co-operation. There are nearly 400 T&G members at the factory.
In the recent ballot they supported strike action by almost three to one and industrial action short of strikes by just over four to one.
Staff voted for action after rejecting Michelin's offer of a non-consolidated pay increase of £650 or three per cent. This means that any rise in pay would not count towards the salary on which pensions are calculated.
That offer was comprehensively rejected in a workplace vote in which nearly nine out of ten took part.