Corus steel workers in Scunthorpe rejected an improved pay offer on Wednesday of last week.
The unions have been in talks since the company offered a 1.5 percent annual rise and a one-off payment of £200 per worker last month.
The new offer was not revealed, but the unions confirmed it was an improvement on this.
Mick Fell, chair of the Scunthorpe multi-union committee, said talks had made “progress” but the offer wasn’t good enough.
The unions want a “substantial” pay rise, in line with inflation.
It is also demanding a 35-hour working week and extended holidays for the 4,000 steelworkers.