AM Online

Ryton strike ballot soon

The pay talks between Peugeot and T&G union leaders broke down yesterday and more than 4000 Ryton plant workers are now to be balloted for strike action.

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.”

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