(Sharecast News) - BT is facing possible strike action after its new pay offer for UK workers was rejected by the Communication Workers Union.

The telecoms company announced on Thursday that it will be giving frontline workers a £1,500 pay rise - its biggest in more than two decades.

It will be given to 58,000 workers including engineers, and contact centre and retail staff. BT said it would be "focused on the lowest-paid workers" and represents an increase of between 3% and 8%.

The CWU had been pushing for a 10% pay rise in the face of surging inflation.

BT chief executive Philip Jansen said: "We know that the cost of living continues to rise and by making this award, we're ensuring that our lower paid workers will benefit most and as soon as possible. I'm pleased that we've been able to make this pay award - the biggest in 20 years - to thank our colleagues and recognise their hard work."

However, the union has rejected the pay rise. "We have no choice now but to immediately prepare for a statutory industrial action ballot," it said. "We will be sending further communications to members via email and social media later today."