Argos is facing potential industrial action at its Staffordshire distribution centre amid a row over pay with trade union Unite.

Unite claims the retailer has shelved a planned pay increase and is planning a pay freeze for two years. 

Argos management have written to staff at the Barton-under-Needwood centre individually to urge them not to support industrial action, The Sun reported. 

The retailer has offered the centre’s 300 staff an extra day’s holiday a year but it is understood 97% of staff turned down the offer.

The retailer had proposed a 1.7% increase in pay in the 2012-13 and 2013-14 financial years in return for a five-minute reduction in lunch and tea breaks. 

But it is understood the pay offer was rescinded and the time returned to the lunch and tea breaks. 

Unite officer Rick Coyle said: “It’s all well and good offering an extra day’s holiday, but in the current climate our members need the money.”

Argos declined to comment. 

Earlier this month the catalogue retailer reported like-for-like sales jumped 5.2% in the eight weeks to March 2 as sales of tablet devices drove a strong performance.