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More than 130,000 British postal workers are to be balloted on strike action in an argument over pay. The Communication Workers' Union (CWU) rejected a 2.5% pay rise offer and said it would begin balloting staff later this month. The CWU said Royal Mail's business plan would lead to 40,000 job losses, pay cuts, mail centres and delivery office closures and threaten pensions. The Royal Mail said it was a fair offer in a "competitive" market. It added that the recent opening up of the UK's postal sector meant it had lost business to rivals. The CWU has been calling for a 27% pay rise over five years, which it says would bring general worker pay in line with the national average.