Union Unite has begun balloting more than 200 drivers and warehousing staff at white goods manufacturer Indesit UK about possible industrial action over pay settlements and redundancy terms.

Unite regional officer Mark Plumb said the ballot, which ends on 7 July, was the result of anger over two years of sub-inflation pay settlements and moves by Indesit to lower the value of redundancy payouts.

Unite said drivers and warehouse employees received a 1.5% pay rise in 2014 when inflation was at 2%, with a further rise of 1.5% in January this year, when inflation was at 1.7%. It said the firm wants to reduce redundancy payouts – calculated on a notional 45-hour working week irrespective of the hours actually contracted – to the individually contracted hours of 37 or 40 a week.

“As the drivers deliver more than 16,000 items of white goods each week, any industrial action could severely disrupt deliveries,” said Plumb. “We urge the management to negotiate a fair and equitable settlement for our members.”

Indesit UK declined to comment.