Employees at a company which supports elderly people with mental disabilities in Otago and Southland have been issued with suspension notices in a dispute about pay.
The Service & Food Workers Union says the Pact Group issued 12 suspension notices on Thursday, but these were later withdrawn after the union agreed to end a ban on paperwork.
The union says the company's offer of a 1% pay rise does not cover rising living costs.
The two parties are to attend a mediation hearing next week.
Pact was not immediately available for comment.