Workers at chocolate factory Barry Callebaut have called off their planned overtime ban after their pay dispute was resolved.

The company had offered 3.9 per cent to the workforce in June, when Retail Price Index inflation was 4.4 per cent.

About 80 members of the Unite union had voted in favour of industrial action, but the dispute was settled after talks today said factory spokesman Chris Hurt.

He declined to put a figure on the settlement.