UNION leaders warned today that industrial action by council workers cannot be ruled out if they were offered a pay rise below the rate of inflation.

Neil Derrick, senior organiser for the GMB in Yorkshire, said members across York and North Yorkshire were in a militant mood ahead of a seven-point pay claim being submitted this month.

Mr Derrick said: "Our members have left us in no doubt whatsoever that if they don't get a decent settlement they will take industrial action.

"We will have a very tough battle ahead if the Chancellor has his way and imposes a cap of two per cent on local government pay increases. The absolute bottom line is that the claim ought to be weighted to benefit those at the bottom end of the pay-scale."

The claim is calling for:

* A one-year deal.

* £1,000 or five per cent whichever is the greater.

* A minimum hourly rate of £6.30.

* A standard 35-hour week (without loss of pay).

* A minimum holiday entitlement of 25 days and one extra day's leave for all employees.

* Increase the sleep-in allowance to £60.

* Increase the night shift bonus to 150 per cent, 175 per cent and 200 per cent over the next three years.

Ben Drake, York branch secretary for the union UNISON, said: "I think there would be a willingness to take industrial action - we can't rule it out if we are offered a pay increase that does not at least keep pace with inflation - and we're determined to achieve this."

He said strike action would be the last resort if the pay claim talks failed to produce an acceptable settlement for members.

Mr Drake added: "We want to reach agreement by negotiation."

UNISON represents 2,500 members working at City of York Council.

The city council employs about 7,000 workers, while Selby District Council has about 400 on its staff.

A City of York Council spokeswoman said: "Pay negotiations operate at a national level and the council is not directly involved."

The pay claim talks are set to commence in London in April.