Despite claims by Unite that it will not be proceeding with any action against Paragon Print and Packaging, Technoprint and Sessions Label Solutions, Technoprint managing director Mark Snee said he would still face costs from dealing with the situation.

Snee said nobody had yet informed him that no action has been taken, so he has had to instruct a solicitor to handle the claim.

He added that there were actually two actions taking place, one on behalf of the union and one on behalf of the members individually – the second of which would not be called off.

Snee said: "Even if Unite writes to its solicitor, it can't pull the other claim until all the respondents say that they want to pull it and that isn't going to happen. The solicitor isn't going to write to every respondent asking if they want to drop it, they probably can't even get in contact with some of them.

"I can't not respond now, so I have had to instruct the solicitor to take action, which is a cost to me. It seems that Unite was quick to set off this legal action, but they are now struggling to keep it in the tin."

He added: "If Unite is unsuccessful, presumably our costs will have to come from them – either way, somebody will be paying money for no reason. Is it any wonder the industry is struggling so badly?"

Technoprint bought the commercial division of Sessions in May, after the company went into administration the previous month.