Visteon, the car parts manufacturer, is facing union action after it announced pay freezes and pension changes to save it from going into administration.

Workers at its Merseyside assembly plant in Halewood have been urged by the Transport and General Worker’s Union (T&G) to reject the company’s plans.

Visteon said failure to implement the restructuring package ‘will have serious consequences for all those who depend on Visteon UK for employment or pensions’.

A spokesman for the T&G said: "The company is in a difficult position in the UK and globally, and has put forward a package of pay and pension which they said is the only package they can afford. It's going to go to ballot but we are saying to our members to reject it.

"Visteon was laying it on the line yesterday, it was a pistol to the head routine. There is the theory that they will go into administration. It's up to our members to cast their votes accordingly."

A spokesperson for Visteon said: "At the meeting, representatives of Visteon confirmed the company is unwilling to continue its financial subsidy for an unprofitable Visteon UK.

"Management has shown its commitment to saving as much of Visteon UK as possible and has invested significant time into giving the unions and employees every opportunity to be consulted and informed on the issues. A final package of restructuring proposals was tabled in June. The implementation of the restructuring actions is now urgently required."