Workers at mobile phone giant 02 have overwhelmingly rejected a pay offer, raising the threat of industrial action.

The Communication Workers Union yesterday said its members voted by 2,684 to 111, a majority of 96 per cent, against a proposed pay deal.

The union warned that if the pay offer was not improved, an industrial action ballot will be held.

CWU officer Dave Johnson said: "The message from our members is clear - they are fed up, frustrated and furious that in O2's most successful year they are being denied a basic pay rise.

"It is clearly beyond their comprehension that the O2 board can afford to pay themselves huge salaries and bonuses whilst denying them a cost of living increase. This obscene state of affairs is totally unacceptable." The union said that under the pay offer, workers previously employed by BT would receive no increase.

Meanwhile, mobile video phone pioneer 3 UK yesterday said it had teamed up with record label EMI Group and would add fulllength music tracks from artists such as Robbie Williams, Kylie Minogue and Joss Stone to its phones.

3 UK, which is controlled by Hong Kong conglomerate Hutchison Whampoa, said its three million UK customers would be able to access all the artists that EMI Music UK had mobile rights for, including Coldplay, Jamelia and Norah Jones. Chief Executive Bob Fuller said music remained one of 3 UK's most popular services.