The future of Ryton, Peugeot's British car plant near Coventry, came under renewed scrutiny yesterday when pay talks covering 5,000 production workers broke down.
Tony Woodley, TGWU deputy leader, said the firm, the UK's most successful producer, had made a "poor" offer of a two-year deal worth 3-3.5% in the first year and even less in the second. The firm said it was worth 7.3%.
Urging staff to reject the deal, Mr Woodley said: "Ryton is one of the most productive, profitable and efficient in Peugeot Europe." He accused the firm of preventing progress towards closing a gap of up to £50 a week with most other car workers.
The firm, which is pressing for state aid to revamp Ryton, said the offer was worth 3% plus £10 a month in the first year and the rate of inflation or 2.75% plus £10 a month in the second. "We are extremely disappointed it has come to this," said a spokesman.
