The meeting, which brought together union representatives and Confederation of Paper Industries (CPI) officials, follows the union's rejection of the latest pay offer of an increase of 2.85%.

GPMU president Ray Williams said another meeting will now be convened for 11 August, but he gave a stern warning to the paper industry: "I have told the CPI that they have to come back with an improved offer next week, or else the notices for industrial action will be sent out."

Union members voted in favour of industrial action in a ballot that commenced in June, following the initial pay offer rejection.

Around three quarters of the UK's paper mills would be affected if industrial were taken.

A Scottish mill manager expressed his dismay at the situation, given the closures the Scottish paper industry has seen over the past few years. "When I look back over the last few years in Scotland we have gone from 17 mills down to 10. They [the GPMU] are like lemmings to the cliff face."

There are some 80 paper and board mills in the UK with 15,800 employees.

They produce 6.2m tonnes of paper and board annually, of which 1.3m tonnes is exported.