The latest round of Whitley Council pay negotiations have broken down.
The discussions over pay for manual workers on the Island started at the beginning of the year, with the aim of reaching settlement on pay increases by 1st April.
However talks have now collapsed with no agreement in sight.
Employers are offering 2½% in the first year, plus a one off-payment of £300, with an increase equivalent to the Retail Price Index or 3% in years two and three.
Secretary of the Employees side of Whitley Council, Bernard Moffatt, says he doesn't think they were far short of a settlement but it's likely the matter will now go to a ballot of the workforce: