Fonterra has hit out at a statement made by rival Open Country Cheese claiming the dairy giant's capital structure plans would reduce competition.

Yesterday, Open Country Cheese chairman Laurie Margrain said Fonterra’s planned stage three of its capital restructuring process could lock farmers into the co-operative.

Open Country Cheese is warning legislative changes favouring its rival could reduce competition in New Zealand’s dairy industry.

Chairman Laurie Margrain warned that dairy giant Fonterra’s planned stage three of its capital restructuring process could lock farmers into the co-operative.

It is widely thought that changes to the Dairy Industry Restructuring Act would be required, depending on the details of the plans.

Just six out of 34 unionised Open Country Cheese Waharoa dairy factory workers have jobs following the conclusion of six weeks of industrial action.

Yet the Dairy Workers Union claims it is satisfied with the details of a secret deal reached between it and the company.

In what was at times a bitter tit-for-tat public spat, Open Country Cheese and the Dairy Workers Union have arrived at a mediated settlement – the details of which are confidential.

Long awaited resolution between Open Country Cheese and nearly 40 dairy factory workers could be reached this afternoon.

Open Country chairman Laurie Margrain told NBR this morning negotiations between the Dairy Workers Union and the company over the last two days could result in an end to the impasse that began last month.

Workers at Waharoa factory initiated strike action last month after workers, represented by the union, called for changes to processes the set hours of work and roster changes and ratios between temporary and permanent workers.

Open Country Cheese workers, locked out from their Waikato factory after they initiated industrial action last month, will picket the company’s Auckland office today.

Nearly 40 members of the Dairy Workers Union are entering their third week of a lock out.

After one unsuccessful attempt at mediation, another is scheduled for this Thursday.

Dairy Workers Union national secretary James Ritchie said the staff want to return to work and have their jobs covered by a collective agreement.