Although unions are alleging that the 7.3 per cent pay offer is worth considerably less over its two-year term, yesterday's talks broke down over company plans to raise employee pension contributions.
The management are arguing that the pay deal and the pensions hike from 4 to 5 per cent of salary are in line with Ford UK's recent package.
There is already a big question mark over the future of the plant. Peugeot has already warned that a proposed £250m plant development programme intended to solve existing under capacity problems as well as accommodate boosted 206 production plans, may be dependent on an increase in Government aid.
A Peugeot spokesman said: “The deal on the table is without doubt the best in the industry.”