BUSINESSES and residents in Mid Cheshire are bracing themselves after postal workers threatened to strike.

The Royal Mail's Communication Workers Union (CWU) voted for industrial action over pay in what would be the first national strike since 1996.

If the latest round of talks fail, about 110 staff at Northwich's delivery office could walk out. The office sorts mail for much of Mid Cheshire.

Northwich's CWU representative Paul Roberts said: 'The Royal Mail are being unreasonable - but hopefully industrial action won't happen.'

The move was supported by 77% of CWU members at a ballot at the union's annual conference. The CWU says the Royal Mail's pay offer of 2.5% should be increased so that pay rises to the national average over five years. But cash-strapped Royal Mail says this would cost an unaffordable £1bn.

Mr Roberts added: 'This offer amounts to a pay cut, not a pay rise, because we are being told we would lose holiday pay and early start pay instead. Hopefully it won't get to the stage where residents and businesses are affected. I believe we'll come to a compromise because it doesn't help either side.'

Cuts in jobs and postal services as well as 'attacks' on postal workers' terms and conditions were the key issues of the dispute, said CWU deputy general secretary Dave Ward. He said: 'If there is no progress within the next few days, we will have no alternative but to announce strike action.'

Royal Mail insists its offer is 'realistic and fair'. A spokesman said: 'The only way we are going to deliver great customer service, and improve pay for our postmen and women, is by modernising to compete. We have contingency plans which we will put in place in the event of any action.'

Clive Davenport, of the Federation of Small Businesses, warned that a postal strike would be 'devastating' for small businesses. 'A cheque delayed in the post can mean the difference between life and death for a business,' he said.

The union must give Royal Mail seven days notice of any industrial action.