Every county and borough in the North-East falls below the national average weekly pay for full-time workers, a survey revealed.

North-East workers are vastly underpaid and losing out to their more affluent southern counterparts.

Employees in the worst hit area - Middlesbrough - earn more than £100 less than the countrywide median wage, and £324 less than the average weekly pay packet in London.

Paul Kenny, GMB senior official and member of the TUC General Council, said: "These figures point to the unfair distribution of income from Britain's labour market.

"White collar, professional and managerial workers are getting an unfair share of the national cake."

The blue-collar labour force and female employees were worst affected by pay discrepancies.

Mr Kenny said: "Manual workers and all women workers in manufacturing, in private and public services, who predominate in most regions, earn way below the national average wage of £464.75 a week."

The announcement of the new Earnings Survey - Occupational Analysis 2002, carried out by Durham University, provided more fuel for national minimum wage campaigners as it highlighted the gulf between the average pay band and the amount the lowest paid workers earn.

Mr Kenny said: "The national minimum wage equates to £157.50 a week, which is more than £300 less than the national average.

"Either there will have to be a serious re-rating of pay for the lowest paid or taxes will have to increase on the high earners to bring fairness back to the system."

Business leaders said the findings had to be set against the backdrop of more affordable living standards.

Michael Bird, chief executive of the North East Chamber of Commerce, said: "It is not new news that North-East earnings are lower than the national average. But to set against lower earnings are lower living costs than elsewhere and the best place to live and to work in Britain. Some of Mr Kenny's conclusions seem to bear little relation to the research findings."

Richard Towers, director of the National Low Pay Unit, said regional policy needed to be urgently redressed to cope with income divide.