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Union dispute 'threatens MG Rover's future'

MG Rover has been warned its survival is at stake after workers rejected a company pay and conditions offer made during the Christmas period.

They threw out an offer which included a 2.5% pay rise combined with an overhaul of flexible working arrangements, by a 2,275 to 1,127 vote.

There could now be a ballot on strike action.

Speaking on BBC Radio West Midlands Tony Woodley, national organiser of the Transport and Workers Union, said: “A strike is the last thing anyone can afford. This company cannot and would not survive a dispute. People feel they are not valued and that is extremely dangerous.

“That fact that MG Rover is surviving and selling vehicles in a very competitive market is in itself a tremendous achievement. But this is not a company that is out of the woods yet.”

MG Rover said it will continue negotiations with the T&GWU.

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