The union is balloting members on whether to take strike or industrial action after they rejected a 2.9% pay offer put forward by the Confederation of Paper Industries (CPI) on behalf of its UK packaging members at the end of last year.

The offer, for the year September 2013 to September 2014, was rejected by 84% of the more than 2,000 Unite members that responded to a postal ballot in November.

According to Unite national officer Paul Finegan, union members are asking for a pay offer of more than 3.3%. “We want an above-inflation pay offer. The companies – Smurfit Kappa, DS Smith and Saica Pack UK – have made record profits so its not as if they are having difficulties.

“The paper industry itself is having difficulties – we understand that and we moderated our pay claim as a consequence of that, but the packaging industry has increased its profits. Smurfit Kappa and DS Smith’s profits have gone up by 7.5% and Saica’s went up 23.7% last year so this really isn’t about their ability to pay.

“Senior executives in the industry get hefty pay packages and shareholders benefit from the profits, but they won’t give a fair deal to the workers.”

The latest postal ballot was opened yesterday to more than 2,000 members at around 50 UK sites, and will close on 11 March, at which time, in the case of a majority 'yes' vote, the union must give 28 days of their intention to take action, with seven days notice then required ahead of strike action.

“We hope at the end of the ballot the results will allow us to get back around the negotiating table to resolve the matter. It’s a pity we have to go to these lengths so we are hoping it will be resolved,” Finegan added.

Head of employment affairs for the CPI Paul Storey said: "The industry believes that its final pay offer of 2.95% is fair and reasonable and reflective of the sector performance. The offer is significantly higher than the median settlement level of 2%, which is curently being realised in the manufacturing sector."

"We have put our best offer forwards and we now have to wait for the outcome. We hope that the offer will be accepted but in fairness we don't know what the future will hold."