GPMU deputy general secretary Tony Burke said the agreement had been reached following discussions between union officials and management.

"There are still a number of major issues that need to be resolved, and union recognition is just the starting point," he said.

Despite the success of union recognition, Burke said there were still "considerable redundancies" planned for the plant.

Industrial action could have been avoided he added, if management had decided earlier to award union recognition to the workforce.

The issues that remain for discussion include working time, salaries and overtime premiums amongst other items.

Workers at the Sparkbrook-based plant took both a series of 48-hour and 72-hour stoppages following the breakdown of talks after threats of around 100 job cuts by management (PrintWeek 29 April).

GPMU officials and a number of the Euro Packaging workforce also met with Employment Minister Gerry Sutcliffe last week, and Burke said following presentations, an enquiry into the dispute and working conditions at the plant would be made if necessary.

Euro Packaging is one of the largest UK manufacturers of paper bags, with its extrusion, conversion and print facilities for polythene bag manufacturing, supplying a number of the major supermarket chains.