The Unite union recently submitted an above-inflation pay claim for its 1,800 public sector members and warned that its workers were ready to ‘fight’ to defend their rights.

And the union’s spokesman, Nick Corbel, today warned that ‘industrial action is a possibility’ if its pay claim is rejected.

But Economic Development Minister Alan Maclean this morning urged employers not to agree to large pay claims – as it would only fuel further rises in inflation.