A dispute at the Canterbury Meat Packers lamb-processing plant in Marton is to go to mediation.
The Meat Workers Union says it received a letter from the company on Friday saying it is prepared to go into mediation as early as next week.
National secretary Dave Eastlake says union members rejected another offer from the company in a secret ballot on Thursday.
More than 100 union members have been locked out since 19 October after negotiations for a new collective agreement broke down.
Canterbury Meat Packers says some have signed new contracts.
Most however remain out of work and have been picketing in protest.
The company served the lockout notice on those who refused to sign new individual contracts, which included a pay cut.
