Chicken supplier 2 Sisters has hit back at "misleading and inaccurate" claims by union Unite over its handling of a worker dispute.

Unite claimed 2 Sisters had suspended employees last week for staging a sit-in protest to defend their union convenor at the Smethwick plant near West Bromwich after an alleged incident of racial abuse.

In a strongly worded statement, the poultry processor confirmed 55 employees had been suspended following unofficial industrial action, but rejected the suggestion that the suspensions had anything to do with racial abuse, insisting it had thoroughly investigated the claims.

"2 Sisters is committed to creating a workplace in which all employees are treated fairly," said a spokesman.

"That our workforce continues to grow and employs people of 26 different nationalities is testament to this."

Union officials insisted communication needed to be improved. "Of course we cannot support unofficial action, but the company's ludicrous response to this situation is adding to tensions at the plant and has wasted police time and disrupted production," said Unite regional officer Joe Clarke.

Regular talks are ongoing between the two parties and 2 Sisters expressed confidence that the situation would be resolved swiftly. There is currently no suggestion that further protests are planned.

This week's row continues a difficult period for the chicken specialist and its staff. As part of its national efficiency programme, the company has had to lay off 95 staff at its Willand site in Devon and the same number at its cutting division at Letham. It also had to take the decision to close its Morecambe site after a fire in May.

The rationalisation is part of owner Ranjit Singh's approach of developing centres of excellence as opposed to a range of sites producing a wide variety of chicken cuts.

Singh has, however, promised further cash to develop the specialist plants.