Contract talks between Irving Shipbuilding and workers at East Isle Shipyard in Georgetown, P.E.I., have failed to reach an agreement, leaving the union in a position to hold a strike vote Wednesday.

The two sides have been in negotiations since October 2009. The 115 workers will have to decide whether to strike or to accept Irving’s latest offer, which includes a three per cent raise in each of the next three years.

If they vote against it, they will be in a legal position to strike.

A union spokesperson said the workers want a five per cent raise in each of the next three years.

In a recent letter to the union, Irving said that delays caused by a strike could hurt the company’s reputation.

That, in turn, would hurt its bottom line and its ability to pay its workers.

The letter said the shipyard is “operating in very difficult markets,” because its costs are higher than its international competitors, and demand for and sales of the tugboats it builds are low.

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