WORKERS at a York factory have rejected a pay offer and could be balloted on industrial action, it was announced today.

The GMB union said its members at Remploy, the country's biggest employer of disabled staff, voted by 6-1 against a proposed deal worth an extra £5.50 a week. The company has a knitwear factory, based at Redeness Street, York, which employs about 70 people.

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.

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

Updated: 10:13 Monday, May 05, 2003