SIMIC

The prospect of disruption at the port responsible for handling almost half of the country's container traffic, risks a repeat of damaging cargo backlogs of last year.

Unite said the port operator's - Hong Kong's Hutchison Ports - offer of a five per cent pay rise was unacceptable. UK consumer price inflation was 8.2 per cent in June.

"This is an effective pay cut, with the real rate of inflation currently standing at 11.9 per cent. Last year, the workforce received a below inflation pay increase of 1.4 per cent," said Unite.

The proposed action, which Unite expected would begin some time this month without substantial progress in resolving the dispute, is part of a wider union campaign for wage settlements to protect their members from cost of living increases.

Said Hutchison Ports: "The company made what we believe to be a very fair offer and we are disappointed with the result of the ballot. The union has agreed to our request to meet and we hope that any industrial action can be avoided."

Unions are ramping up industrial action across a number of sectors in the UK, particularly transport, with train strikes planned on several dates in August. Britain's transport ministry has accused unions of having no interest in reaching a settlement to avoid mounting disruption of the rail network.

Responding to the announcement of further strikes by train drivers across much of the country on August 13, the Department for Transport said it was "incredibly disappointing that Aslef bosses have announced more destructive strike action, particularly when it has become clear they have no interest in holding constructive talks with the industry."