WORKERS at a Ministry of Defence vehicle repair firm have walked out over a pay dispute.

Staff at Defence Support Group (DSG), which has a base in Catterick Garrison, North Yorkshire, are taking part in a 24-hour strike today (Wednesday, October 15).

Workers have rejected a one per cent pay increase, wanting an eight per cent rise.

The firm told The Northern Echo its position as a Government trading fund owned by the Ministry of Defence restricts any pay offers.

However, Unite the union says more action will follow on Thursday, October 23, unless DSG bosses relent to talks.

The company repairs, maintains and overhauls various military vehicles, including Land Rovers and heavy duty trucks, which have returned from active service in Afghanistan.

More than 800 of the firm’s 2,400 nationwide workforce took part in the walkout, including some of its near 100 staff employed at Catterick.

Mike McCartney, Unite national officer for the Ministry of Defence and Government departments, said: “Members voted overwhelmingly for strike action because of the derisory pay offer and early indications show strong support.

“Further industrial action, beyond what has already been announced, is on the cards, unless the management gets around the table to negotiate in a constructive and positive fashion.”

The Government previously revealed plans to sell DSG to cut its defence budget as part of the 2010 Strategic Defence Review, and Mr McCartney said if that deal goes through, workers should be in a position to benefit.

He added: “DSG will probably be sold off to the private sector in 2015 and our members want to be able to take with them to their new employer a decent rate of pay, which can be consolidated for pension purposes.

“It has cash reserves of £65m, which will go back to the Treasury, once the sale has been completed.

“The management can afford to give a substantial pay rise to the workers who have made the firm such a success story.”

DSG has sister sites at in Dorset, Colchester, Donnington, Scotland, north Wales and Wiltshire.

The union said further 24-hour action will take place at all the factories over the next fortnight unless the firm agrees to talks.

However, a DSG spokesman reiterated it was unable to meet the demands owing to its Government links.

He added: “We are still part of the Government and restricted to what we can offer, which the Chancellor has set at one per cent.

“It is the same for all public sector workers; we are all in the same boat.”