Rubbish collectors in the Arun district and their employers are holding last-ditch talks to prevent a strike.

Street cleaners and refuse collectors in Arundel, Littlehampton and Bognor are due to walk out on Friday if there is no resolution to their pay dispute.

The strike will hit thousands of households.

About 90 workers from the Onyx depot in Littlehampton are demanding to be paid £6 an hour, a £1 pay increase.

Onyx says it is losing money on its contract with Arun District Council and cannot afford the rise.

A spokesman for Onyx said: "Negotiations are still going on. There has been no breakthrough as yet."

A spokesman for the GMB Union, which represents the refuse collectors, said: "We will be negotiating with Onyx up to the wire but it does not resolve the bigger issue that the contract Onyx has with Arun District Council is in crisis.

Council chief executive Ian Sumnall refuted claims the contract was in crisis.

He said it was working so well Arun was investing an extra £300,000.

The refuse collectors are due to lobby councillors at a full meeting of the council tonight.