WORKERS at a factory on Teesside are preparing to strike, despite warnings from bosses that industrial action could result in work being moved elsewhere.

Peace talks broke down earlier this week, with union officials accusing managers at the Yarm Road plant of British Polythene Industries (BPI), in Stockton, also known as Visqueen, of provoking workers into strike action.

A strike ballot of about 200 workers is expected within the next ten days.

Union officials said they were "shocked and dismayed" when BPI bosses made a revised pay offer of 2.5 per cent. Workers rejected an offer of 2.8 per cent in a ballot last week.

Last month, workers were sent a letter telling them that any industrial action would lead to the company reviewing all aspects of employment at the site - which could mean work being moved away from the site. Union officials described the letter as inflammatory.

Following the breakdown of the latest talks, bosses announced they would implement the 2.5 per cent rise with immediate effect.

In a statement released yesterday, the company said it could not agree to pay demands because of tough trading conditions and increased pension scheme costs.

BPI said unprecedented increases in raw material prices and deteriorating market conditions had made it impossible for it to accept union demands for a three per cent rise.

But Joe Keith, of the Transport and General Workers Union, which represents staff at the plant, said: "This was not a major ask on our part and, frankly, we were gob-smacked when they came back with a lower offer. This is a very unusual way to seek a resolution.

"For our members now, enough is enough, and we will be seeking authority for industrial action, including strike action and an overtime ban, in the next few days."

The latest move is thought to be the first time full strike action has been threatened at the factory.