The workers, who are members of GMB union, plan three days of strike action on 22, 25 and 26 May, after 93% voted for industrial action.
A spokesperson for Severfield said: “Severfield, notes the decision by the GMB to conduct strikes.
“Severfield has, over the last three months, discussed, debated, and reviewed a number of options before reaching an offer of employment terms that we believe appropriately supports our colleagues in challenging times.”
Ben Kirkham, GMB regional organiser said: “It’s vital Severfield invests in Dalton and those who work here.
“Staff can all see that they are struggling to retain and recruit skilled workers. If the company wants to deliver its growth plan, then it needs a world-class workforce.”
“Hundreds of workers have now voted by massive majorities three times to take industrial action. It’s time that management realises that this workforce stands united and pay up.”