Qinetiq, the defence research group, faces the prospect of industrial action after announcing plans to freeze the basic pay of its UK employees in 2009.

Unions reacted angrily to the proposal which they said had come “completely out of the blue”. Prospect, the defence trade union that has more than 2,000 members at the group, said Qinetiq had “unilaterally” announced the pay freeze without prior warning.