Hundreds of staff at Telford IT firm Capgemini are balloting on strike action after refusing a below-inflation pay offer.

About 350 employees who provide IT services for HM Inland Revenue and Customs are deciding whether to take action over a 2.3 per cent offer from management.

Other members of the Public and Commercial Services Union around the country are also taking part in the vote, which will finish on March 12, but Telford is the largest site.

A meeting is being held at Meeting Point House, in Telford town centre, tomorrow at noon for employees to discuss the issue but the union is recommending a yes vote.

The ballot is the first in the 12 years the contract to Revenue and Customs has been running.

The union says Capgemini is making profits of more than £50 million from the contract and can therefore afford a better offer.

Alex Flynn, national spokesman, said: “Inflation is around 4.4 per cent at the moment and while fuel prices and council tax is going up this is a real terms pay cut.”

Chris Morrison, chair of the regional PCS Capgemini group, who is based at Matheson House site in the town centre, said: “Members are angry at what we see is a clear disregard for our efforts in delivering the profits, and the service to the department.”

Workers also hope to take their case to parliament.