INDUSTRIAL action in Scottish schools has moved "significantly closer", teachers' leaders have warned.

The Educational Institute of Scotland (EIS) teaching union made the threat after talks on pay with council leaders failed to reach agreement.

Teachers have been offered a two year deal of 2.5 per cent backdated to April this year and linked to a number of commitments on maintaining teacher numbers and addressing workload concerns.

However, the EIS rejected the offer arguing the commitment on teacher numbers was only for one year and that there was no commitment to restore cuts to pay for supply staff - which has led to shortages. The union also argued it was unfair an offer to tackle excessive teacher workload was contingent upon the deal.

Larry Flanagan, EIS general secretary, said: "We have rejected the offer that was placed on the table by the employers' side which fails to address our major concerns on excessive teacher workload, safeguarding teacher numbers and restoring short-term supply teachers' pay and conditions.

"We remain open to further dialogue with employers over the summer months in the hope of making progress on each of these elements, but if no progress is made by early in the new school year in August, the EIS will ballot our members on the offer, with the prospect of industrial action should the package be rejected.

"Industrial action is always an option of last resort, but teachers are growing increasingly demoralised by their excessive workload which has been compounded by a number of factors including the decline in teacher numbers and the national shortage of supply teacher availability."

However, Cosla, which represents most councils in national collective pay bargaining, called for a "large dose of realism" from the trade unions.

Billy Hendry, Cosla human resources spokesman, said: "At a time when national government public sector pay policy is recommending pay increases of no more that one per cent and with inflation below zero we have offered a generous two year deal of 2.5 per cent.

"Additionally, teacher numbers have been secured and a joint agreement reached with the unions which addresses their concerns over teacher workload.

"We have put our very best offer to the teacher unions to give councils a settled period of financial planning and continuity in the services we provide to our communities. It is also a good offer for teachers given the period of austerity we are living through."