WORKERS at BAE Systems in Samlesbury are ready to go on strike over plans to cut their pension benefits.

Staff threatened an unofficial walkout last week when bosses said discussions aimed at addressing the company's £2.8billion pensions blackhole had "gone as far as possible."

It is understood that workers were advised to wait until union officials reported back to shop stewards with details of the company's final proposals for the final salary scheme yesterday.

But those measures, which include cutting benefits for those who take early retirement and voluntary redundancy, were "unanimously rejected" by the joint shop stewards at Samlesbury.

Now union members at BAE's 70 UK sites will be balloted in January on whether to accept the proposals. The measures are likely to be rejected, leading to a ballot for industrial action.

Neil Sheehan, works convener at Samlesbury for the Transport and General Workers Union, said: "The unanimous view of the shop stewards is to recommend rejection of the proposals put forward by the company.

"There has been some compromise but we are still concerned at the effect the proposals will have on future redundancy situations.

"This will see a significant reduction in people's pensions and we believe will lead to compulsory redundancies."

Mr Sheehan said the company's decision to retain the "top up" pension scheme for the company's 800 senior executives had created an "us and them" atmosphere among employees.

Richard Coltart, a spokesman for BAE, which employs over 3,500 at Samlesbury, said the company would not comment on possible industrial action.

He said: "This is still an on-going process and there is some way to go before this is resolved.

"All I will say is there has been a tremendous amount of goodwilll on both sides during these negotiations."

Earlier this month BAE Systems said it was to inject £500million into the scheme to help plug the black hole, which has been caused by longer life expectancy and poorer than expected investment returns.

Employees at the company had already increased their pension scheme contributions to over nine per cent in 2002 after the scheme was closed to new members.