Peugeot workers in Coventry are threatening a repeat of last year’s strike after a landslide vote against the latest pay offer.

The long-running dispute at Ryton saw a day’s strike last August over what workers see as unacceptable changes in conditions.

Although the unions recommended accepting the first deal, they all backed rejection of the latest offer after it was revealed that it was hardly different from the initial proposal.

Workers voted by 1,780 to 374 against the offer, which was for a 4.3 per cent increase, with a rise next year of inflation plus 0.7 per cent.

The annual shutdown at Ryton is also to be scrapped in the offer, with workers being given extra flexibility about when they take their holidays.

Duncan Simpson of the AEEU said if satisfactory negotiations did not get going with managers then there would be a ballot over whether to take industrial action.