UPDATE 1-TNT and unions to restart wage talks

(Rewrites, adds union reaction)

AMSTERDAM May 20 (Reuters) - Dutch mail company TNT NV TNT.AS and unions said on Tuesday they would restart wage talks in a bid to avert a countrywide strike next week.

"We have listened carefully to our employees and see room for negotiations," a TNT spokesman said, adding that talks would restart on Friday.

The unions said they would be willing to talk to TNT on condition the company come up with a "substantially better offer". Workers are demanding a 3.5 percent wage rise backdated to April 1 for a one-year period.

TNT has offered a 1.5 percent increase effective April 1 and another 1.5 percent rise on Jan. 1, 2009, conditional on changing employment conditions.

The company argued its workers were already paid 20 to 25 percent more than market rates. It had originally sought a pay freeze, in a bid to cut costs and compete better with rivals.

TNT shares were down 1 percent at 26.13 euros at 1206 GMT, in line with a 1 percent lower Amsterdam blue chip index .AEX.

TNT is targeting cost savings of 395 million euros ($615 million) between 2007 and 2015.

The unions have been holding rolling industrial action in different parts of the country, which will culminate in a countrywide strike planned for May 27 to back their demands.

The unions said on Tuesday they would continue to strike and that preparations for the countrywide strike were on track.

TNT, which is expected to lose its monopoly in the domestic market, has said that without changes to employment terms, it may have to cut up to 11,000 jobs from its Dutch workforce of 59,000.

The government said on Friday it would postpone the opening of the Dutch mail market due to uncertainties over a level playing field in Germany and labour conditions at home.

TNT has steadily lost market share to rivals Sandd and Deutsche Post's (DPWGn.DE) Selekt Mail. (Reporting by Harro ten Wolde, editing by Will Waterman)