BT workers are to hold a ballot on strike action after the company failed to meet a union-imposed deadline for improving their 2% pay offer.

The Communication Workers Union (CWU) was seeking a 5% pay increase and will now ballot its 50,000 members.

BT revealed earlier this month that it had returned to profit, making £1bn in the year to 31 March. It had made a loss of £244m the previous year.

"Our members are angry about the blatant double standards when it comes to pay for those at the top compared to the rest of staff at the company," said Andy Kerr, CWU deputy general secretary.

BT announced last week that its chief executive, Ian Livingston, would be paid a £1.2m bonus for his work last year.