Controversial moves to impose new terms and conditions on Nestlé Rowntree workers have been suspended by the company.

The decision, agreed during a meeting in Switzerland between management and unions, was hailed as a “major breakthrough for both sides” by the GMB union.

Last month, the company announced plans to make 645 people redundant in York and move some production out of the UK. The GMB and Amicus unions said they had not been consulted about the plans, which included a reduction in wages that would have been a breach of EU employment guidelines

A joint statement issued by Nestlé and the unions said: “This meeting was very constructive with positive talks and good exchanges of information. It was agreed the company would suspend the HR1 (notification to the DTI) associated with terms and conditions changes, and that consultation on this will continue, with the aim of having balanced, sensible and mutually acceptable terms and conditions and an implementation plan by the end of this year.”