The union representing Isle of Man Post Office workers says it can't rule out industrial action if a pay freeze is imposed.
The Communication Workers Union says its members have helped the business remain profitable and should be rewarded.
Isle of Man Post is insisting all public sector bodies in the Island are subject to a pay freeze.
Talks between the union and the Post Office began last April but have reached deadlock, and last week workers were told Isle of Man Post would not move from its position.
The union is calling for arbitration to resolve the dispute, and may ballot members on industrial action.
National officer Terry Pullinger says it's been impossible to come to an agreement so other options will have to be explored:

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