MORE than 1,000 bank managers and branch staff employed across the region by Lloyds TSB yesterday received ballot papers over industrial action.

Lloyds TSB Group Union (LTU) is consulting 1,171 North-East members over measures such as an overtime ban, as it escalates a pay dispute with the bank.

In May, more than 96 per cent of members voted to reject a pay offer of 3.5 per cent.

A spokesman said: "Though staff would naturally prefer to avoid taking industrial action, many believe they have no alternative but to do so, after many years of the bank forcing down pay levels."

He said some branch staff were paid just 71p an hour more than supermarket checkout workers.

"Over recent years, Lloyds TSB has adopted an aggressive strategy of pushing down salaries.

"Branch staff now often find that they could earn more working at a supermarket checkout, despite their greater responsibilities."

The deadline for ballot papers is June 30 and the union will announce the result shortly after.

Nationally, more than 30,000 staff out of 80,000 employed by the bank will be balloted, from junior clerical workers to senior management grades, representing about 80 per cent of all branch staff.

The union last night claimed that its action would have a serious impact on all branch operations, leading to shorter opening hours, including lunchtime closures.

Lloyds TSB this year reported a 20 per cent drop in profits to £3.49bn, in contrast to bumper years for rivals such as HSBC and Royal Bank of Scotland.

A spokeswoman for the bank said staff were paid in line with the industry although the pay scheme had changed to reward performance, rather than long service.