UNION leaders say industrial action at the North-East's biggest employer of disabled staff is a real prospect.

Workers at Remploy, which employs several hundred people at factories throughout the region, have rejected a pay offer and could be balloted on industrial action, it was announced last night.

The GMB union said its North-East members voted by six to one against a proposed deal worth an extra £5.50 a week.

Talks between the two sides will be held later this week, but the GMB said it would have no option but to hold an industrial action ballot if the dispute was not resolved.

The union said it was seeking an increase of £20 a week for the workers and a better rate for travelling expenses because some disabled staff had to travel long distances.

The GMB represents staff at Remploy factories in Hartlepool, Spennymoor, in County Durham, Sunderland, Newcastle, Gateshead and Jarrow, on South Tyneside.

Workers at Remploy Stockton are represented by the printers' union.

GMB North-East regional organiser Derek Cattell, who represents about 100 staff at Spennymoor, said: "There is real prospect now of industrial action over the pay claim, unless negotiations can resume to find a solution.

"We will be pushing to resume the national talks on this matter and hopefully they will be successful."

Phil Davies, GMB national officer, said: "Our members deserve a decent pay rise. Just because they are disabled doesn't mean that they are cheap labour.

"They deserve respect, and this offer is a disgrace."

A spokeswoman for Remploy said the offer contained many benefits and had been recommended for acceptance by the union negotiating committee.

She said: "Remploy reached agreement with the trade unions in April for a significant package of pay and conditions improvements for 6,500 employees.

"All five unions, including the GMB, decided to recommend acceptance of the package.

"In the ensuing ballot, there has been a rejection of their recommendation.

"This is now a matter between the trade unions and their members.

"The company is surprised that the union, which recommended the offer, should describe it as a disgrace."