The Post Office could be on a collision course with unions over pay – insisting there will be a pay freeze this year.

The Communication Worker’s Union says unless the situation can be resolved, the dispute could lead to strike action.

The union says as a profitable company which isn’t directly controlled by government, its members shouldn’t be included in this year’s public sector pay freeze.

But a statement from the Post Office says otherwise.

Isle of Man Post Office says it’s been in discussions with the CWU since April last year, but can’t offer a pay rise under the freeze announced by government.

The organisation says it’s made a number of proposals to the CWU which have been rejected and the last meeting took place on Wednesday with Industrial Relations Officer Ian Cochrane.

The Post Office’s board is currently considering the options available to it.

In its statement, it says it’s approaching the current economic situation in a responsible manner, in order to protect the future prosperity of the Post Office, jobs and postal services.