Talks are underway between the Southern District Health Board and the union representing its hospital kitchen workers to try to solve a dispute over the future of its hospital kitchens.
The DHB approved a controversial contract for the international catering company Compass to run the Dunedin and Invercargill hospital kitchens in May.
But the Service and Food Workers Union is threatening legal action because up to 20 percent of kitchen staff could lose their jobs.
The union said it was positive about the progress of the talks so far.