The BPIF's decision not to negotiate a national pay increase follows talks with its members and regional directors, who made it clear that they did not want the organisation to enter in into negotiations.

Unite has reacted with anger to the decision, branding it "short-sighted, unjustified and not in the best interests of the printing industry".

The BPIF's withdrawal from negotiations follows last year's stalemate after the BPIF and Unite failed to reach an agreement. However, this latest development means that, for the first time since the Second World War, negotiations won't even be attempted.

BPIF corporate affairs director Andrew Brown said he understood the union's reaction, but claimed that the industry could not afford to increase workers' pay across the board, explaining that any pay rises would need to be negotiated on a company-by-company basis.

"Many members are struggling to afford what they're paying now, so they haven't got anything to spend on increases. This isn't two fingers up to the partnership agreement… we hope that the fabric of it will remain, as it did last year," he said.

Unite assistant general secretary Tony Burke said he appreciated the parlous state of many firms in the sector, but highlighted how Unite members had already made many "massive sacrifices" in the past year and insisted the union "would not stand by and watch members' pay and conditions be eroded".

"If the BPIF could have just come to the table with a reasonable and fair offer, it would have bought stability to the industry. Now we're facing 12 months of instability," he said.

He added that, like Brown, he was keen to preserve the 2005 PAW agreement, which was the first of its kind in any industry, but claimed that grassroots support for the agreement was waning fast.