PORT of Liverpool boatmen who are on the verge of striking have been threatened with losing £5,000 and facing further redundancies if they take action.

Forty-six men who tie up ships are being balloted for action after being told they will be transferred to Drake Port Services because of a downturn in activity at the docks.

Peel said it can no longer afford to employ a full workforce.

They claim this will mean a pay cut of £10,000 and an end to the final salary pension scheme.

The latest letter from harbour master Capt Steve Gallimore for Peel Ports raised the spectre of bringing in outside workers if strikes went ahead.

In a stark warning over the weekend he said: "Strike action can only lead to serious damage being done to the reputation of both you and the Port of Liverpool as a whole.

"Any loss of business will regrettably lead to further redundancies.

"Any industrial action will mean offers of enhanced redundancy package following transfer will be withdrawn."

He also said that auditors estimated boatmen each were liable for about £5,500 because of an error in the way the company had allocated non taxable allowance to POLAS staff.

He said: "In the event of industrial action, you will leave me no choice but to insist that . . . the liability rests with the individuals. I urge you to rethink your action because our contingency plan in the case of industrial action will means the Port continues to operate, leaving you without alternatives."