Siptu's members at TDG Ireland, which handles about 15 per cent of the distribution activities for the Londis chain of convenience stores, are planning to take industrial action next week in a dispute over pay.

The union has told the company that it will introduce a ban on overtime from next Monday at the warehouse in Johnstown, Co Kildare. This will be followed by a 24-hour work stoppage on Friday if the two sides remain deadlocked.

Siptu, which represents 45 staff at the plant, is seeking a 7 per cent pay increase for this year from TDG, which it says is due to workers under the terms of the latest national wage agreement, Towards 2016.

TDG, an international logistics group, has told workers they will receive a 3 per cent pay rise this year, which was paid in January.

Frank Jones, an assistant branch organiser with Siptu, said management at TDG has so far refused to discuss the issue, either directly, or through facilitated talks at the Labour Relations Commission.

"Instead, management applied a 3 per cent annual increase on basic pay for the second year running - well below the terms of T2016," Mr Jones added.

With the annual rate of inflation running at 5.2 per cent, Mr Jones said the offer of a 3 per cent pay rise was not acceptable.

The plant in Johnstown is owned by Londis but operated by TDG. It handles ambient goods, including beer and spirits, toilet rolls and breakfast cereals.

ADM Londis, which operates more than 330 stores in Ireland, said the dispute was a matter for TDG.

"TDG has reassured us that it is working to resolve the matter and TDG's expectation is that no disruption to our services will arise," Londis said.