UP to 700 workers at engine maker Cummins' North-East plant are to be balloted over possible industrial action as part of an ongoing pay dispute.

The Northern Echo revealed last week there was unrest at the site, in Darlington, after a new pay scheme was introduced.

Although it is thought only 12 of the 850 workers at the factory have been adversely affected by the revised scale, a mass meeting of up to 700 members of the Amicus union voted to reject the pay rates by a two-to-one majority.

Last night, preparations were being made to hold a ballot at the site, in Yarm Road.

Mike Routledge, Amicus regional organiser, said: "In line with wishes, I can confirm that we will be proceeding to organise an industrial action ballot."

The ballot is expected to take up to 28 days to organise and, if members vote to take action against the company, Cummins will then be given formal notice of seven days before it begins.

Managers at the plant and union representatives are holding daily meetings to try and resolve the situation.

Mr Routledge said discussions would continue while the ballot was being organised, in an attempt to broker a deal to avert any potential action.

US-owned Cummins is understood to be keen to settle the matter, as its Darlington plant continues to expand and create jobs to meet demand.

It recently recorded an all-time high in order levels, with production having increased by more than 50 per cent in the past year, with 300 diesel engines now being made by Cummins every day. A five per cent pay rise for workers is also due to be introduced in July. Last night, a spokesman for Cummins said negotiations were ongoing with union officials and the company was hopeful of settling a deal.