Home Retail Group faces possible strike action at its catalogue retailer Argos after union Unite said it will hold a ballot to take industrial action over pay.

Unite said it would be balloting 2,000 distribution workers about possible strike action and will cover workers at Rugby, Bridgewater, Castleford, Basildon and Heywood.

Workers have rejected a 4 per cent pay offer. According to Unite, workers are also angry that Argos intends to change the sick pay scheme and implement monthly pay instead of weekly pay without any compensation.

In December last year Argos workers in Ireland went on strike in a dispute over pay.