A strike ballot will be held at First Active after management yesterday refused to rule out job cuts after this week's €887 million takeover by Royal Bank of Scotland.

During a "stormy" meeting with union leaders, First Active said lay-offs could not be discounted, according to SIPTU, which says it represents two-thirds of the 650-strong workforce.

With no further talks planned, a ballot on industrial action would be held over coming weeks, said Mr John Swift, SIPTU insurance and finance branch secretary.

Although First Active declined to comment, its new owner has made no secret of its determination to shed "hundreds" of jobs after adding the company to a portfolio of Irish interests that also includes Ulster Bank.

"We went into the meeting looking for two basic assurances: that there will be no compulsory lay-offs and that pay and conditions will not change. The company would not give us guarantees on either count so we have no choice but to make an appropriate response," said Mr Swift.

A strike would initially take the form of half-day stoppages, he said.