Dozens of contract workers at Tata Steel in Scunthorpe have called off a 24-hour pay dispute strike.
About 40 workers, including cleaners, cooks and administrative staff, were set to walk out on Friday because they were not paid the living wage.
The Community union said workers were paid the national minimum wage of £6.50 an hour but were pressing for £7.20 an hour.
Negotiations with employer OCS Solutions had improved, it added.
Talks between the union and the company started in February but had broken down.
Steve McCool, national officer for the union, said there had been no previous pay offer on the table, but OCS was now willing to speak to the union about a possible pay increase.
He said: "It's good news because it's creating an opportunity to explore a remedy. If that doesn't materialise, we will be implementing the industrial action again."
Source; BBC