Employees at CE Electric, which distributes electricity across North East England, will go on strike for seven days, starting at 4pm on Friday, September 5.

According to the GMB union, the dispute is over the failure to pay comparable wages to those earned elsewhere in utilities sector.

An official strike ballot saw the 1,100-strong firm's union members vote by 88 per cent to 12 to take strike action, to secure wages levels comparable to those paid elsewhere in the utilities sector.

The industrial action could severely disrupt work on a £63m contract to replace street lighting in South Tyneside.

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.

An overtime and standby ban by CE Electric workers has been in place since the last week in June.

The latest company offer made on the July 16 with ACAS, was rejected by 88.5 per cent.

Joan Anderson, GMB organiser, said, "These workers are totally underpaid in comparison with other workers in the rest of the utility industries.

"They work in a highly profitable industry and keep it going day in and day out while the proceeds go elsewhere. They have had enough of this and they want to see it sorted out once and for all.

"The management, at the talks today in Leeds, must listen to the voice of their workers and come forward with a pay plan which will deliver comparability for these workers."

A spokesman for South Tyneside Council, said: "CE Electric has confirmed that it will be forced to prioritise the work it undertakes in the event of strike action being taken.

"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 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."