STRIKING workers at a Ministry of Defence vehicle repair firm have warned they could take further action.

Staff at Defence Support Group (DSG) say they haven’t dismissed another walk-out after the company was sold by the Government.

Ministers last week approved a £140m deal to offload DSG to engineering company Babcock, saying it would significantly slash defence budget costs.

DSG, which has a base in Catterick Garrison, North Yorkshire, looks after Land Rovers and heavy-duty trucks used in Afghanistan and by UK-based units.

However, hundreds of its 2,400-strong UK workforce previously went on strike for ten days, including a number of Catterick workers, and downed tools for further days in protest at its potential sale and a management pay offer.

The Unite union is pushing for an eight per cent wage rise, with the company offering one per cent, saying it is limited by the Government’s stance on public sector pay.

Mike McCartney, Unite national officer, said workers could strike again, disrupting the Babcock agreement, if their demands continue to be ignored.

He said: “DSG have hidden behind the Treasury’s pay cap and denied the workforce a decent pay rise to reflect their contribution to the £15m surplus the organisation posted in the last year.

“It’s a disgrace hard pressed workers struggling to make ends meet are seeing their pay cut in real terms, while the Treasury rakes in £140m.

“The Ministry of Defence and DSG need to sit down and negotiate a settlement or risk further action, which could disrupt the smooth handover to Babcock.”

However, a DSG spokesman previously told The Northern Echo it could not increase its pay offer.

He added: “We cannot exceed what the Chancellor has talked about over the one per cent for public sector workers.

“The firm is no different than any other public sector organisation.”