Grangemouth oil refinery bosses and Unite Union officials believe they have reached a proposal in the dispute over pensions that would be considered "in the coming days".

The possibility of a breakthrough came yesterday after Ineos founder Jim Ratcliffe and Unite general secretaries Tony Woodley and Derek Simpson met following the return of workers from a 48-hour strike.

Scotland's First Minister Alex Salmond said: "I'm very pleased both sides have listened to the advice of the two governments in Edinburgh and Westminster - and indeed the wider Scottish community - in engaging in meaningful discussions.

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"Hopefully this paves the way for a resolution to the dispute in the coming days."

UK Business Secretary John Hutton said: "I welcome this positive development.

"As I have said to both sides in the dispute today, talking is better than striking.

"We need to avoid any further disruption to fuel supplies in Scotland and I am greatly encouraged that both sides have agreed to further talks."

Around 1,200 Grangemouth workers walked out last Sunday and Monday following proposal from Ineos to close its final salary pension scheme to new workers. Ineos also want to phase in a contribution to the pension scheme from workers of 6% of their salary.

The strike is believed to have cost the economy £100m. Fuel supplies have been disrupted and much of the UK's North Sea oil production was halted.

It is thought it could take some time before normal operations are resumed.

(GK/JM)