THE firm at the centre of a pay dispute at the region's biggest airport last night denied it had told staff their jobs are at risk if they strike.

About 170 check-in staff who work for ground handling agent Groundstar at Newcastle Airport are due to vote on a proposed walkout.

The staff, who are on the minimum wage, are threatening industrial action after rejecting a three per cent pay rise.

Union bosses yesterday accused Groundstar bosses of making the situation worse by sending a letter warning staff they could lose their jobs if they strike.

Graham Eastwood, regional organiser with the Transport and General Workers Union, said: "They are inflaming the situation. Our members are already angry and this has made things worse."

But a spokesman for Groundstar, the ground agent for British Airways and KLM at Newcastle, denied that a letter had been sent to workers, and said "no such letter exists".

The union has been in talks since the last pay deal ran out in April and this week called a ballot on industrial action after reaching a deadlock in negotiations. If the workers agree to strike, flights in and out of Newcastle would be hit from Monday, August 18 - a week before the bank holiday.

August is traditionally the airport's busiest period, with 400,000 travellers expected.

Bosses are already preparing to draft staff in from other airports to keep any delays to a minimum.