Pay strike union issues cash threat to Labour leaders

Labour MPs have been warned by a major union to back industrial action over poor pay or lose thousands of pounds of funding.

Unison threatened to withdraw money from senior MPs including Foreign Secretary David Miliband if they support the Government's below-inflation offer.

More than 600,000 public sector workers, including refuse collectors, teaching assistants, dinner ladies and social workers, are staging a two-day strike next week over the 2.45 per cent rise.

Union chiefs have blasted the deal at a time when households are squeezed by the credit crunch and soaring food and fuel prices.

Losing union cash would be a devastating blow for constituency parties with less than two years to a General Election.

Unison is urging MPs from Labour's North-East heartland to sign up to a campaign highlighting what it believes is an unacceptable Government pay offer.

Newcastle branch secretary Kenny Bell said: 'We donate a lot of money to constituency parties and now we are asking them to hold MPs to account. We want them to show just why we claim to have a strong relationship.

'We have written to all the MPs asking their position and what support they are offering Unison members during their strike.

'As well as money donated, there are thousands of members in each MP's constituency and when it comes to elections we could see many wondering where their MP was when they were on strike.'

Mr Miliband's South Shields constituency has received £4,525 from Unison in the past seven years. Ex-minister Stephen Byers's party has been handed £3,325.

Deputy chief whip Nick Brown - Labour's minister for the North-East -said: 'No MP could alter their policy on public-sector pay because of financial support for their constituency. We have to form our own opinions publicly, in a transparent manner.'