Negotiations are underway today to avert a strike at Peugeot's Ryton plant near Coventry. This follows an overwhelming workforce vote to reject the company's latest pay deal worth 7.3 per cent over two years.

T&G union officials claim that the package is worth between 3 per cent and 3.5 per cent in the first year and 'less than that' in year two.

Tony Woodley, the union's general secretary, says the pay offer compares unfavourably to others in the industry and believes members deserve better. Another bone of contention is the employer's decision to increase the employees' pension contribution – a move which Woodley says has given the company a “pensions holiday for donkey's years.”