Total SA (TOT) Tuesday said it is "actively encouraging" talks between its contractors and unions over how to facilitate the return of contract workers to a construction project at its U.K. Lindsey oil refinery.

"These discussions between the unions and the contracting companies should focus on getting the project back up and running within the agreed timeframe and budget," Total said in a statement Tuesday.

A spokeswoman for conciliation agency ACAS confirmed however there will be no official joint talks taking place through them today.

Spokesman for the union Unite Ciaran Naidoo told Dow Jones Newswires there has been some progress in negotiations and that a joint meeting would be held in London later Tuesday between the unions and representatives for the contractors from the trade association for the U.K engineering construction industry.

The negotiations will review a working practice agreement signed by both parties through the Engineering and Construction Industry Association.

"At the top of the agenda is obviously the reinstatement of the workers who have lost their jobs at Lindsey as soon as possible," Naidoo said.

Total said delays, under performance and low productivity at the project have already cost in the region of an additional EUR100 million.

Friday, Total fired 647 contract workers at Lindsey following unofficial industrial action, and offered a deadline of Monday afternoon to contractors to reapply for their jobs. Total said it will be the end of the week before its contractors can say how many workers will return to work.

"There is no question of a reduction in pay or dilution of existing terms and conditions," it said in its statement Tuesday.

-By Angela Henshall and Nick Heath; Dow Jones Newswires; (4420) 7842 9285; angela.henshall@dowjones.com