The National Union of Journalists is to ballot members at Thomson Reuters over strike action following what the union called an "insulting below inflation pay offer".

The NUJ chapel at the news agency said in a statement: "This chapel rejects the below-inflation offer of 1.5 per cent across the board as insulting after three years of real-term pay cuts.

"This chapel insists on a return to the previous practice of annual across-the-board pay rises at least in line with inflation. It demands 7 per cent across the board and in light of our continuing pay dispute, and the company's failure to come close to our demand, the chapel will proceed with its ballot for industrial action."

Michelle Stanistreet, general secretary of the NUJ, said: "Our members at Thomson Reuters have said enough is enough. Over the past years they have tried to meet the management half way on pay issues, despite the fact that pay agreements dating even before the credit crunch have been derisory. They are getting to the point where they can no longer afford to work for Thomson Reuters because they cannot afford to pay their train fares to work or pay their bills. Voting for industrial action is their only option."

Thomson Reuters was unavailable for comment at the time of writing.