Amid government efforts to end a crisis over postal strikes, the Unite union has revealed its decision to ballot some 14,000 British Airways cabin crew about whether to take strike action.

"Management's determination to impose unacceptable contractual changes on cabin crew leaves us no alternative," said Unite union boss Derek Simpson.

The loss-making airline announced on Monday that it was "disappointed" by the decision, after weeks of talks between unions and management over newly announced cost-cutting measures.

Britain's flag-carrier airline says plans for cutting the equivalent of 1,700 staff in Britain and a two-year freeze on basic pay for cabin crew would carry on as earlier announced despite the threat of strikes.

Unite, Britain's biggest union, says it is encouraging more discussions between the parties but has expressed readiness to support calls for a strike, in accordance with the vote results.

Meanwhile, Royal Mail and union leaders began fresh talks aimed at ending the row over pay, conditions and modernization.

The talk began as it was revealed by the London Chamber of Commerce and Industry that postal workers could significantly hurt London economy with industrial action and strikes.

The chamber said research suggested postal workers had cost London businesses 500-million-pound since the start of the summer, GBP 200 million of which was mounted in the two-day strike action last week.

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