UPDATE: TALKS are continuing in the Treasury Wines dispute with hope plans to lock workers out at 11pm tonight won't eventuate.
The company was preparing to lock out 100 workers unless a pay dispute was resolved at a Fair Work Australia this afternoon.
Australian Workers' Union Victorian Secretary Cesar Melhem said at 4.30pm discussions in Fair Work Australia had not led to a resolution so far, but talks were continuing between senior union officials and company representatives in Mildura.
"I am optimistic that good sense can prevail and this matter can be resolved," he said.
"The AWU wants to see this matter resolved, and we can only hope the company does too."
A TWE spokeswoman said the company was hopeful of a resolution after discussions today.
"After extensive and positive discussions today, we have reached an in-principle agreement with the AWU on a proposed new agreement,'' the spokeswoman said.
"While we still have a number of administrative procedures to undertake, were hopeful of being in a position to put a new draft Enterprise Agreement to an employee ballot shortly.
"We're working towards some of the preliminary administrative procedures being completed in time for employees to recommence work tonight from 11pm.''
The spokeswoman earlier said Treasury Wines had been discussing a new agreement since April, well before the expiry of the current enterprise agreement on June 30.
"We are very disappointed negotiations on the Karadoc Enterprise Agreement have come to an impasse," the spokeswoman said.
"Throughout these discussions the majority of claims put forward were resolved; however the key unresolved issue is around the pay increase being offered by the company.
"TWE's offer equates to a 10.5 per cent increase over the life of the new agreement - three years - and as we've stated from the outset of negotiations, we believe this is a fair offer."
She said the situation arose when one of the bargaining representatives from the Australian Workers' Union instigated industrial action.