THE Advisory, Conciliation and Arbitration Service this week brought ÖйúAƬ staff and employers together for talks on pay, raising union hopes that an improved offer will be made.

ACAS agreed to set up yesterday's meeting between the Universities and Colleges Employers Association and representatives of the eight ÖйúAƬ unions after a standoff in pay talks sparked an unprecedented wave of industrial action.

UCEA chief executive Steve Rouse approached ACAS but requested that it confined its role at the meeting yesterday at ACAS head office in London to that of observer. UCEA expected to chair the meeting and to speak first.

Before the meeting Mr Rouse said: "ACAS is not assuming a mediation, conciliation or arbitration role. We asked merely that they bring all the parties together. The UCEA board is due to meet on Thursday morning and until then I cannot say what the position will be at the afternoon meeting."

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The unions have been cheered by ACAS's involvement though they wanted ACAS to chair yesterday's meeting. Even so, they were hopeful of an improved offer. AUT general secretary David Triesman said: "We have waited too long. This approach must be serious or the dispute will deepen."

Natfhe spokeswoman Brenda Kirsch said: "We are pleased that ACAS is helping to facilitate negotiations and we certainly hope to be made an improved offer."

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Natfhe members are already working to contract, effectively withdrawing good will, and spokespeople say they will consider escalating the action, possibly including a further one-day strike. The AUT plans to hold a second ballot in the new year on admissions and examination disruption.