(Adds statements by the government and the MLP)

The General Workers' Union said this afternoon that a mediator had stepped in over the shipyards privatisation issue and had made initial contacts.

The government confirmed the announcement, saying that if the voluntary early retirement/resignation schemes are fine-tuned, such changes would apply also to workers who have already applied for the schemes and others who apply while the talks are in progress.

The two sides are deadlocked over a GWU request for job guarantees for dock workers who do not take up the early retirement schemes, which the government has refused.

The government has, however, said it is prepared to hold talks on "fine-tuning" the early retirement and resignation schemes.

The MLP in a statement said it augured that the mediation would be a success, in the national interest and the interest of the workers.