ROYAL Mail workers in Worcester are to be balloted on strike action after a pay deal was rejected.

The Communication Workers Union's (CWU) executive has rejected what Royal Mail describes as its "full and final offer", which consists of a 2.5 per cent increase on basic pay and allowance.

Royal Mail claims postal workers are overpaid by 25 per cent in comparison to its competitors.

But the CWU says Royal Mail's business plan will result in 40,000 job losses, attacks on pension arrangements, closures of mail centres and delivery offices and a reduction in pay.

About 1,100 union members in Worcestershire and Herefordshire will be balloted from today, with the result to be announced on Thursday, June 7.

Brendon Allen, secretay of the Worcestershire and Herefordshire branch of the CWU said he was confident members would back the strike.

He said: "As far as we are concerned we are disappointed at the strings attached to the deal from Royal Mail.

"We are looking for a six month period to deal with all the issues affecting the industry and are not happy to take a 2.5 per cent increase. We are confident we will get support for the union."

Ballot papers were dispatched to 130,000 CWU members within Royal Mail yesterday (TUES). The last national postal strike was in 1996.

A spokesman for Royal Mail today said they were disappointed with the decision to ballot for strike action.

He said: "The UK mails market declined by 2.3 per cent last year and by the end of this year around one in five of all letters will be handled by our competitors.

"The union are well aware that Royal Mail's people are currently paid 25 per cent more than our competitors pay, rising by a further 10 per cent if you include the amount we pay for pensions. And they are also aware that Royal Mail's productivity is 40 per cent lower than that of our rivals.

"It is in this context that we have offered a rise of 2.5 per cent for much needed efficiency gains - plus an £800 bonus if we hit our targets - as well as a share of anything achieved over and above this."