Talks to resolve a pay dispute between crane drivers and HTC Wolffkran have collapsed, it has been revealed.

Union Unite said the likelihood of strike action this summer has now increased after peace talks broke down in an ongoing dispute over pay increases.

In March, workers unanimously rejected a 3% pay rise offer, which Unite described as 'derisory' and 'insulting'. Employees are unhappy that wages have not returned to the level they were prior to the 2008 construction recession.

Talks to resolve the dispute were arranged on Wednesday, 10 May. However, discussions collapsed after HTC insisted it would only increase its offer by 0.5%.

Unite said the Consumer Price Index (CPI) is expected to reach 3.4% to 3.5% this year and the Retail Price Index (RPI) which is usually higher is already above 3%.

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In addition, HTC Wolffkran's recent accounts reveal the company saw a 46% increase in gross profits, with an operating profit of £4.3 million.

Acting national officer for construction Jerry Swain, said the company's latest offer is "frankly pathetic".

"Unite will be preparing to launch a full industrial action ballot," he said.

"Our members are not going to accept a below inflation offer from a company which has seen profits soar. This offer represents a cut in real terms to our members' pay."

Major sites where HTC Wolffkran is currently operating include: the Tottenham Hotspur football stadium, the Westfield shopping centre in Shepherds Bush, the BBC TV centre at White City and the new Goldmans Sachs building in Farringdon."

Mr Swain added if strike action goes ahead, there will be a "massive effect on all sites where the company operates".

"The company needs to understand that crane drivers undertake a highly skilled job in stressful, difficult conditions and want to be properly rewarded for their work," he said.

"The only way that HTC can avoid major industrial action is if the company returns to the negotiating table with a substantially improved offer."

(LM)