Argos workers vote for stoppage

The union warns that Argos could face "severe disruption"

Workers at four distribution centres run by Argos have voted for strike action after rejecting a 4% pay offer.

Dates for a series of 24-hour strikes and then a four-day stoppage will be announced later this week.

The Unite union warned that this could lead to shortages of goods at Argos stores, at a time when its new catalogue is about to be launched.

Home Retail Group, which owns Argos, said it had contingency plans in place to limit the impact of any stoppages.

'Unacceptable' offer

We continue to believe that the pay offer of 4% is very competitive in the current and likely future difficult market environment Argos statement

The staff who have voted in favour of strike action currently earn up to £22,000 a year.

The union says it is angry that the company has offered a "below inflation pay deal" when Home Retail Group's profits rose by 16% last year and its chief executive received a 58% pay rise.

"A below inflation wage offer is a pay cut and this is totally unacceptable to our members," said Unite national secretary Jennie Formby.

"They are already struggling to keep up with rising food and energy costs," she said.

Argos said its pay offer compared "extremely favourably" to other retailers.

"We continue to believe that the pay offer of 4% is very competitive in the current and likely future difficult market environment, " the company said in a statement.

The government's preferred inflation measure, the Consumer Prices Index, rose to 3.3% in May. But the wider Retail Prices Index measure - the one used for many pay negotiations - climbed to 4.3%.

The strike action is expected to affect four of Argos' 15 distribution centres based in Basildon, Bridgwater, Heywood and Magna Park in Leicestershire.