Post Office workers in the UK have voted “overwhelmingly” in favour of industrial action. A strike is now a real possibility, as the dispute between the Post Office Ltd (POL) and the Communication Workers Union (CWU) rumbles on.

The parties have clashed over pay, job security and the future of the Post Office network.

After closing the ballot on Friday, the CWU revealed that 93% of participants voted in favour of striking action. There was a 66% turnout, the CWU confirmed.

The result of the vote was published only a day after the Government announced that Post Office Ltd had lost its contract to provide welfare payments.

The Department for Work & Pensions announced on Thursday that Citibank will provide a new ‘over-the-counter’ service at PayPoint outlets from 2012, in a contract that is worth around £20m a year.

Dave Ward, CWU deputy general secretary, said: “Post Office workers have sent a clear message to management in this ballot that they are not prepared to take double standards when it comes to pay.

“However, this ballot is about more than pay; it is the job security of our members and the future of the Crown office network which is also at stake.

“We want to see a strong network of Crown offices, but the government and the company appear to be hiding the fact that they are planning a programme of further Post Office closures.

“Given the lack of support from the government – only yesterday taking a key benefits contract away from the Post Office – we fear for the future of the network.”

The CWU claim POL awarded a “2.25% pay rise to managers and increased directors’ remuneration by 21% (worth £3.9m in 2009-10). However, [it] has pleaded poverty and refused to consider a pay rise for counter staff.”

When contacted by Post&Parcel, a Post Office spokesman said: “Post Office is disappointed that staff in our 373 directly managed (Crown) branches have voted in favour of strike action. 97% of Post Offices are run by subpostmasters and they will be unaffected by any industrial action. Postal deliveries across the UK are also unaffected by this ballot result.”

However, Andy Furey, CWU assistant secretary, said: “Our members have effectively registered a vote of no confidence in Paula Vennells, the Post Office managing director.

“This massive YES vote demonstrates the strength of anger towards POL for attacking their pay, terms, conditions and job security.

“Although we have a mandate to take strike action, we continue to be responsible and our doors are open for POL to talk to us about a fair offer for our members.”

Failure to reach an agreement could result in CWU members taking strike action by the end of March, the CWU said.