SMALL businesses and the people of Dorset face a potential catastrophe if a strike by Royal Mail workers goes ahead.

Members of the Communica-tion Workers Union (CWU) met with Royal Mail bosses and the arbitration service Acas yesterday and look set to ballot employees until September 17 over a possible strike.

Tony Bridger, chief executive of the Dorset Chamber of Commerce and Industry, forecast the effects that a strike would have on local firms.

He said: "A strike would be very disruptive from a business point of view. We handle a lot of cheques. Therefore, if you are a business like the Chamber of Trade, which handles a lot of cheques, you are not going to get the cash in.

"People would start putting things off because of the strike and everything would start to slow down. We really need to keep the momentum going now that growth is at about 1.7 per cent."

Local solicitors would be in the front line of companies affected by a strike.

Brenda Stephens, a practice manager for Gales Solicitors, said: "With private customers a mail strike would cause an upset, although we do not just rely on one system."

Patients awaiting important operations may also be affected. A spokesman for Poole Hospital said: "If the strike went on for more than a week, it would be necessary to put an alternative plan into action. We call the patient within seven days of an appointment, as well as sending out a letter simultaneously."

A spokesman for the CWU's Hants and Dorset branch, Derek Clash said: "We do not want to go on strike. We are providing a service for our customers but our employers have to recognise that we are looking for minimum pay. We want £300 per week basic pay. At the moment a full-time postman receives £261 per week."

Union members also believe there are too many strings attached to their employers' performance-related 14.5 per cent pay offer, which is tied to productivity changes.

Meanwhile the Royal Mail, which is losing around £750,000 a day, are threatening to axe 30,000 jobs unless productivity targets are met.