HUNDREDS of workers today held a one-day strike at Southampton shipbuilder Vosper Thornycroft (VT) after crisis talks between management and unions over a bitter pay dispute broke down in stalemate.

About 650 staff carried through their threat of industrial action in the first of a series of 24-hour stoppages following their rejection of the firm's final pay offer.

Picket lines, manned by dozens of workers from various unions, formed from 7am outside the main gates of the shipyard in Victoria Road, Woolston. Shop stewards claim many skilled craftsmen being paid £269 a week have to supplement their income with family credit to pay for mortgages and the upkeep of their children.

Bosses for VT, which has announced profits of £34.2 million, say there is no more money available to increase their offer.

Bob Stokes, GMB regional organiser, said: "It is disgraceful that skilled craftsmen are in a position where they have to claim benefit instead of being paid the proper salary. The management have created a hostile environ-ment and the workers feel they have no alternative but to take this action.

"We are in a Mexican stand-off, but we are prepared to consider any new situation.'' Pickets booed management as they entered the premis-es through the front gates.

Geoff Price, shop stewards committee chairman, said: "We feel we have been pushed up against a wall by the management's refusal to improve the pay award following last year's pitiful rise of 1.25 per cent.

"The company's profits have been increasing substantially and we believe the basic rate for skilled men at the yard is too low. Many are having to claim benefits to supplement their income.

"That is why we have no choice but to take industrial action. We urge the firm to discuss an improved pay offer."

VT personnel director Colin Reed said informal talks had taken place over the last week to try to resolve the crisis but no agreement had been reached.

He said: "We reaffirmed on Monday with senior stewards that there was no change in the company's offer.

"We have asked them to consider whether in the circumstances there is any value to the strike.

"It is an enormous pity and we do not want our employees to lose any money if they can avoid it but the workforce is determined to pursue their course of action."

Mr Reed added he could not see any obvious way out of the dispute and he was not proposing to change the offer.

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