Strike action by some 500 workers at homelessness charity Shelter was suspended at the last minute as both sides met for talks at Acas this week.

The planned action – a two-day strike on Wednesday and Thursday - is part of a dispute over demands for an extra two and a half hours a week work without additional pay.

Staff argue that the move is equivalent to a £1,700 pay cut. Shelter chief executive Adam Sampson has argued the extra hours are needed to ensure the organisation can compete for contracts with private sector operators like Capita which are increasingly moving into the ‘non-profit’ sector.

Unite regional organiser Alan Scott said Shelter workers were winning ‘massive support’ from the general public and from Shelter clients.

He said: ‘In recent times Shelter has spent at least half a million pounds on refurbishing its head office, has employed six new ‘change managers’ and ensured that senior management pay is in line with 'the market'.

‘Our members believe that some of this money could have been used to protect their agreed terms and conditions of employment.’ Shelter's 2007 annual report revealed annual income of £49.1m, and staff costs of £27.7m.