It is hoped this will be finalised in May and that the agreement will set out the methodology for collective bargaining on an annual basis.

Any agreement would also establish procedures for the resolution of disputes, differences and disciplinary matters.

John Ball, director at Paperlinx's logistics business Delivery Co, said many staff are covered by either a national or a local agreement with Unite.

"Discussions are taking place with a national representation of the trade union to identify how to move forward with the best interests of all the involved parties.

"This will ensure that trade union recognition and representation continues to be available to those that chose it."

The news follows the agreement by Unite members at Paperlinx company Robert Horne for a 3.6% pay deal. It covers those employed at the paper merchant's Northampton, London and Birmingham sites.

Pay negotiations were conducted in November 2008 and the deal came into effect from 1 January.

Robert Horne managing director Alistair Gough said: "This was negotiated in the backdrop of RPI at 4.6% at the time. As you would expect, there was no awareness of the sharp fall in RPI that exists today.

"All forecasts at that time expected a much slower reduction over 2009 with an expectation of only falling to 2% by year end and 1.8% in 2010."

Also see:
Paperlinx records £250m loss after sale of Australian Paper
Simpson re-elected as Unite's joint general secretary