Ballot papers will be handed out to postal workers on Friday despite the Manx government's budget pay warning.
About 250 members of staff will decide whether or not to strike after union talks with Isle of Man Post broke down.
The Communications Workers Union (CWU) is seeking a pay rise for its members despite a public sector pay freeze.
In her budget speech on 15 February the Treasury Minister said public sector pay rises in the current economical climate were out of the question.
Anne Craine added that any pay rises would inevitably result in job losses.
The CWU, which represents 250 workers, has arranged a meeting on 20 February at the Claremont Hotel in Douglas to discuss the outcome of the budget.
National Officer Terry Pullinger said: "There are clearly tough times ahead and I would like to take this opportunity to hear how our members are feeling.
"We don't take these decisions lightly - this will be the first time in living memory that postal workers on the island have been balloted so I want to hear everyone's thoughts".