The managing director of Smith Anderson, Michael Longstaffe, said he estimated 25 per cent of the 210 strong workforce took part in a 24-hour stoppage on Wednesday.

However, he said production was able to continue almost as normal.
Industrial action was taken by employees, who as members of the UK's largest trade union, Unite, were disappointed with the company's decision to introduce a six-month wage and salary freeze from February 1.

Company chairman Freddie Craig said: "I believe some members of what is a very loyal workforce may have been misled by the Unite union and may not fully understand the reality of the current economic difficulties being faced both by the industry and indeed this company.

Speaking to the Fife Herald on Wednesday, Mr Longstaffe said: "The pay freeze is part of our survival strategy.

"We have told workers it's just for six months and that there will be a review in July and a pay award made in August."

The MD added he had been "encouraged" by the numbers of workers who did not take part in the strike and hoped this may avoid repeat action being taken next week.

He also said he felt that in the current climate, with other papermakers such as Curtis Fine Papers in Guardbridge suffering the ultimate fate, people would understand why a temporary pay freeze had been introduced.

Unite's regional officer Willie Wallace said the company had failed to consult the union on the pay freeze.

"It is up to the company to get in touch with us," he said.

"They have not sat down with us to have any serious discussion.

"This isn't something we wanted to do, but we had no choice because the company is imposing a wage freeze."

Mr Wallace added: "All the company has to do is pick up the phone, I can meet with them at any time."

Smith Anderson, which manufactures more than 40 million paper bags every week from its Falkland plant, faces another day of strike action on Wednesday, June 3, if no agreement is reached.