Union South Island organiser John Kerr said the two parties agreed yesterday to meet for further negotiations on November 17.
"The strike notice is still in place but we are hopeful we can get the thing sorted when we sit down at the table next Thursday," he told the Otago Daily Times yesterday.
The union announced on Wednesday its 32 members would strike on November 25 — the day a 1258-passenger ship is due in Port Chalmers — if a stalemate on pay negotiations with Dunedin Railways cannot be broken.
The union members’ collective agreement with Taieri Gorge Railway Ltd expired in August and negotiations stalled as the union pushed for a 4% pay increase in the first year of a two-year deal and a further 2% in the second year.
The company has agreed to a 3% pay increase across the board in the first year, with additional pay increases for nine members above and beyond that level.
"The gap between us is pretty close and where there’s a will there’s a way," Mr Kerr said.
Dunedin Railways spokesman Toby Mann confirmed the pay talks would take place.
The union estimated a 4% increase for all its members would cost the company an extra $12,500 for the year.
