British Energy, the country's biggest nuclear power producer, could face its first strike since privatisation five years ago in a dispute over pay.
Five unions representing 4,000 employees at its eight generating plants are being balloted on industrial action after officials overwhelmingly rejected a 1.8% pay offer.
The ballot result is due on November 5, but the company and unions insisted any action would not jeopardise safety at the eight nuclear reactors. Atomic power plants have been identified as terrorist targets in the wake of the September 11 attacks.
The company said: "In the event of any form of action, safety at the stations remains paramount." The engineers' and managers' association, representing 2000 staff, said: "If industrial action does take place we will guarantee nuclear safety will not be compromised."
BE, hit last year by a series of unplanned stoppages, saw its profits fall from £241m to £10m and Peter Hollins, sacked earlier this year as chief executive, warned it could go into the red this year.
The company, which has raised output this year, has promised a bigger pay increase next year but said this must be tied to corporate performance. This year's increase was due on July 1.
"More talks with the unions are planned; we are confident we can get an outcome which will avoid industrial action of any sort," a spokesman said. "Talks have not reached a complete breakdown."
Separately, BE said it had withdrawn from talks to buy generating assets in the Czech Republic because of problems within the consortium, including International Power, vying with Electricité de France. BE, which is pinning its hopes of profits growth on Canada and the US, had its eyes on the Czechs' nuclear plant.
