Christmas post deliveries in Southend look set to be thrown into chaos as more than 100 staff at the town's main sorting office work to rule.
A backlog of letters and parcels has already built up for homes and businesses in the SS0, SS1 and SS2 postcode areas since negotiations on extra pay and hours broke down on Friday.
Union bosses have warned that the action will continue unless the Royal Mail improves its offer of 21 hours overtime for staff working the two weeks up to Christmas - by far the busiest time of the year.
Royal Mail bosses have denied negotiations have broken down and said they are confident the dispute can be sorted out by today.
The Short Street sorting office normally handles between 150,000 and 200,000 letters a day, but during the festive period that figure can double.
Kevin Simpson, Southend area delivery representative for the Union of Communication Workers (UCW) said the 102 postmen and 43 office staff based at Short Street began working to rule - working their standard hours and nothing more - yesterday morning.
He said: "The staff will not be going out on strike but they are refusing to work any more than their normal hours.
"The Royal Mail must get back round the negotiating table and offer a better deal for them. Their refusal to negotiate means that some mail may not be delivered in time for Christmas."
No other sorting offices in south Essex are likely to be affected by similar action. A Royal Mail spokesman claimed not all staff were unhappy with the offer.
He said: "We are currently in talks with union representatives about the dissatisfaction of some staff over Christmas working arrangements. We are hopeful the matter will be resolved quickly."
He added that it had caused what he described as a minor disruption to services.
He said: "Royal Mail apologises to customers for any inconvenience caused."
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