Employees of north-east electricity distributor CE Electric are embroiled in a pay dispute, and the results of a strike ballot were to be revealed today.

If a strike goes ahead, the borough's street lighting replacement programme will be at risk of "significant delay".

But a spokesman for South Tyneside Council pledged today that no matter what the outcome, public safety would not be compromised.

CE Electric connects the new street lights once they have been installed by Balfour Beatty, which is responsible for providing and maintaining street lighting and highway signs for the next 25 years.

During the first five years, 80 per cent of the borough's lighting columns, and around 8,000 signs are set to be replaced.

The Unite and GMB trade unions, who represent the majority of CE Electric's industrial workforce, have balloted members over the pay row.

Once a decision is made, the company must be given seven days' notice before any industrial action may take place.

The company would withdraw from all private finance initiative (PFI) work, including the borough's Light It programme, immediately before and during any strike action.

It would mark an escalation of existing industrial action, which has resulted in a ban on overtime and stand-by duties since June 26.

Caine Spence, street lighting and highway signs manager at South Tyneside Council, told councillors in an e-mail this month: "Not only will the delivery of the PFI project be significantly delayed, but it also means that cable faults on street lighting will not be repaired."

A spokesman for CE Electric said priorities would change should strike action occur.

He said: "While some disruption to pre-programmed and less urgent work is likely, the steps the company is taking will continue to give top priority to maintaining a secure supply to all its customers during any potential strike action.

"The company has continued to negotiate with the trade unions during the period of industrial action, including involving Acas, and is disappointed the unions have opted for a potential escalation in industrial action rather than to continue negotiation."

The company's latest pay offer is a two year deal, above inflation in both years, with 4.5 per cent on offer for the first year.

But one of the main sticking points is a £15 on-call rate for a 15-hour period.

The spokesman added: "The company is not prepared to put further pressure on electricity prices by conceding to unrealistic pay demands.

"On this basis, the company has urged its employees to vote no and send their trade union back to the table to re-enter meaningful discussions and negotiate a resolution to a fair and reasonable pay settlement."

A council spokesman said CE Electric had confirmed it will be forced to prioritise the work it undertakes in the event of strike action being taken.

He added: "The company will not be responding to street lighting cable faults and will also be withdrawing from all PFI-related works so that it can focus its resources on carrying out urgent work to its network.

"However, there are some PFI-related works that can be carried out in South Tyneside without the need for CE Electric's involvement.

"The council is working closely with Balfour Beatty to see if these can be brought forward so that progress on the delivery of the borough's Light It programme can continue during the course of any strike action.

"Public safety will not be compromised as a result of this dispute, and the PFI project is still on course for completion within timescale and budget."