Unite, the UK's largest union, has notified energy giant National Grid that it will imminently serve notice for industrial action in a dispute over a three-year below-inflation pay offer.

The three year deal, which consisted of 2.5 per cent, 2.25 per cent and 2.25 per cent, has been rejected by union members. National Grid then removed the three year deal at talks yesterday and offered a two year deal of 2.5 per cent and 2.25 per cent, which was also rejected. Unite members voted 94 per cent in favour of industrial action which includes a work to rule and an overtime ban.

Talks have been taking place since April 2010 and as there has been no resolution, Unite will now serve an industrial action notice on the company. National Grid posted half yearly figures showing operating profits were up 31 per cent on last year.

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As Unite members struggle to meet the rises in the cost of living, National Grid chief executive, Steve Holliday, who is said to be "pleased with the operating and financial performance in the first half of the year" will not have that problem as his remuneration package has gone up £67,000 from last year to £2,273,000.

Michael Tuff, Unite Regional Officer, said: "This is the second year in succession we have had to serve notice of industrial action to a very profitable company.

"The company has made it clear to the staff that no extra money is available, however it has just boasted half yearly figures showing a 31 per cent increase in profits.

"Industrial action is not our preferred route - we want a negotiated settlement, but the company's position of ‘no further money available' has forced our members to go down this route."

Around 750 Unite members work for National Grid throughout the UK. Unite members are employed mainly within the transmission part of the business covering substations and overhead lines.

Unite, Prospect and Unison are the three unions involved in the negotiations at National Grid.

(CD/KMcA)