Managers say the business is not making money

Members of the Transport and General Workers Union backed strikes by a majority of 3-2.

Other forms of industrial action were supported by a margin of 3-1.

If strikes goes ahead it will be the first major industrial action at the Midlands car maker in 10 years.

'Betrayed'

The union said workers at the Midlands-based carmaker felt "badly let down" after being offered a pay rise of 2.2%

Workers have also rejected increases of 12 to 18 weeks in maternity pay and a reduction in the service criteria for holiday pay.

One union official said workers felt "betrayed" because the 2.2% pay offer did not reflect the contribution they had made to MG Rover since it was bought three years ago from BMW.

The workers are angry at pay deals for MG Rover bosses, including a �500,000 payment to chief executive Kevin Howe.

Negotiations

TGWU car industry national secretary Dave Osborne said: "As the financial performance of the company improves year on year, the company's response to their most prized asset is a wage offer that will inevitably lead to a reduction in our members' living standards.

"This is clearly not acceptable to our members and is certainly not acceptable to the T&G.

"If the financial position of the company determines an offer to the workforce that can only be described as abysmal, then the management should lead by example, rather than award themselves big pay hikes."

The TGWU called on the company to reopen pay negotiations.

'Overwhelming rejection'

It said it would be meeting other unions later this week to decide its next move.

A total of 1,226 TGWU members voted for strikes, with 787 against, while 1,503 backed action short of a strike with 500 against it.

In a separate ballot, members of white collar union Amicus voted against a strike but in favour of other forms of industrial action.

The union said 243 members voted to strike, with 354 against, while 342 voted in favour of other forms of industrial action, with 257 against.

Amicus joint general secretary Derek Simpson said: "The results of the Amicus and TGWU ballots underline employees' overwhelming rejection of MG Rover's derisory 2.2% pay award.

"We're now calling on the company to reopen pay negotiations to avoid a damaging dispute."