HUNDREDS of workers are set to paralyse operations at Southampton shipbuilder Vosper Thornycroft with a mass walkout in a row over pay. About 700 employees will form picket lines during a series of one-day strikes after voting overwhelmingly in favour of industrial action.

The revelation comes just days after the firm disclosed that the latest generation of warship was to be built at its Woolston shipyard.

It also announced pre-tax profits of £34.2 million, a rise of four per cent on the previous year.

Staff have rejected the management's final pay offer, which is above the rate of inflation, on the basis that their counterparts at Portsmouth dockyard are on higher salaries and the company is not sharing its profits with them.

VT admits the disruption could severely damage its existing contracts, most of which are with the Ministry of Defence, and potential sales.

Bob Stokes, regional organiser for GMB, the largest union at the firm, said between 80 and 90 per cent of workers belonging to five unions at the company voted in favour of strike action.

The first wave begins on Wednesday and staff will also refuse to work overtime from Friday next week.

Mr Stokes said the whole workforce, except technicians in the Manufacturing, Scientific and Financial Union, rejected the firm's pay offer.

"The company's pre-tax profit results are very good but this is not reflected in what is on the table and workers are not getting their fair share.

"At Portsmouth dockyard basic pay rates are considerably higher. A skilled craftsman receives £269 per week at Woolston and £287 at Portsmouth.

"There was a one-day stoppage last year before a solution was found but that was the first walkout at Vosper Thornycroft for 15 years."

VT personnel director Colin Reed) said the firm could not afford to offer more money.

"We have put an offer on the table that is more than twice the rate of inflation and is very fair in terms of the cost of living and comparative with other employers."

It is a two-year deal of 3.3 per cent with effect from April 1 this year, another 0.3 per cent from July 1 plus 0.5 per cent on top of the retail price index, which currently stands at 1.6 per cent, from April 2000.

Mr Reed said it was unfair to compare Portsmouth and Southampton salaries because the former was a joint venture with GEC and not a Vosper compa-ny.

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