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Unite is warning of a UK beer drought as over 1,000 drivers and warehouse staff at XPO Logistics Drinks threaten strike action in response to a “paltry” pay offer of 1.4%.

The workers involved in the dispute are based at 26 XPO depots across the UK, dispatching around 40% of the beer deliveries across the UK.

Unite has announced that it will start balloting its members from this Wednesday (28 July) for strike action and industrial action short of a strike over the company’s offer of 1.4% for 2021.

The ballot closes on Monday 9 August.

Unite said the pay offer, which is below the current RPI inflation rate of 3.9%, adds another blow to the workforce which has already lost between £8,000 and £10,000 over the last year due to furlough and lack of overtime, coupled with no pay increase for 2020.

The union said the workforce voted overwhelmingly in a consultative ballot in favour of a full-scale industrial action ballot after the company rejected an offer by Unite for a manageable inflation increase.

In a separate action, Unite has also lodged a complaint that XPO is cutting all Covid-secure cleaning processes for the drivers, which the union said was the height of irresponsibility', pointing to the rising levels of Covid-19 infections in some areas.

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Unite national officer for the drinks industry, Joe Clarke said: “Our members have suffered great financial hardship during the pandemic with some of them losing up to £10,000 through being furloughed and picking up no overtime.

“The company has responded by offering a paltry 1.4% which is well below the current RPI inflation rate of 3.9%.

“Meanwhile, the drivers, their mates and warehouse staff are working flat out currently to meet the high demand for beer volumes in our pubs as society reopens.

“However, a beer drought could result if our members vote for industrial action because they make 40% of the beer deliveries in the country. This disruption would be on top of the ‘pingdemic’ that is already hitting the sector.

“We call upon the company to engage in meaningful negotiations regarding a decent pay increase for our members.

“Separately, the company has ceased all Covid-secure cleaning processes for our drivers which is ridiculous as infection rates soar. This move is aimed at cutting times for driver deliveries in an unsafe way. It is an act of corporate irresponsibility.”

A spokeswoman said: “We favour dialogue in all our negotiations. We remain open to further conversations in order to reach an agreement, in particular for the hospitality sector that is only now emerging from the impact of the Covid-19 lockdown."