TANKER drivers from the North-East may strike over possible pay cuts of £5,000 under new contracts.

About 100 drivers at Billingham, Felling, Ellesmere Port, West Thurrock, Hull and Stallingborough are taking part in the national ballot involving the Spot Affreightment Division of P&O Trans European.

The action by drivers involved in transporting bulk chemicals follows months of discussions that finally broke down, despite intervention by the arbitration service ACAS.

Ron Webb, the Transport and General Workers' (T and GW) union national secretary for transport, said: "The T and GW is concerned that the new payments scheme, which could lead to pay reductions of up to £5,000, may force drivers to cut corners on health and safety to earn a living wage."

Martin Taylor, managing director of P&O Trans European, said: "We have given drivers the choice of accepting a trial of the contracts or leaving. We certainly don't believe it will cost them £5,000, and we very much hope they will accept them."