Royal Mail's 160,000 workers vote today on strike action over pay. Christine Buckley, industrial correspondent, explains the dispute.

What is this dispute about?

It is about pay and specifically about up-front money.

The Communications Workers Union (CWU) and Royal Mail have talks every year.

This year Royal Mail says that it has offered a pay rise of 14.5 per cent over 18 months, but with a large amount of that money linked to productivity targets such as faster deliveries and having each branch work more efficiently.

The CWU says that postal workers have been offered 3 per cent in October and 1.5 per cent in April, but it wants 8 per cent upfront, so the difference between the two sides is 3.5 per cent.

The unions are also resisting job cuts, but productivity targets and jobs cuts are separate issues.

What form would strike action take?

The most likely action is a series of nationwide one-day strikes which will stop all deliveries and collection and cause a backlog.

Even if, as we expect, workers vote for strike action, there are likely to be further talks after today's ballot. We are still a little way from strike action.

Who would be affected by strike action?

It will affect businesses worst of all.

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