We cannot ignore our members' views

Tony Woodley, TGWU

Chief negotiator for the Transport and General Workers Union, Tony Woodley, said employees had rejected attempts by the company to impose a Friday night shift and compulsory overtime.

The strike will take place on 27 July and will lead to all out action from 21 August if the dispute is not settled.

Deal recommended

Peugeot offered to reduce the working week from 39 hours to about 36.75 in a complicated deal which involved compulsory Friday night shifts during busy production times.

Unions recommended that workers accept the deal because they said there were elements of the proposed package which were good.

Tony Woodley: disappointed

However, members of the TGWU and the Amalgamated Engineering and Electrical Union rejected the package by about 60-40 and said they were prepared to take industrial action.

The main sticking point in the plan seems to be that workers want better compensation than is being offered for working a Friday night shift.

After meeting company representatives on Thursday, union leaders announced that the one day strike would be held later this month followed by an all-out stoppage immediately after the summer shutdown in August.

Mr Woodley said: "Obviously I am disappointed but there were elements of the deal that were not acceptable and we cannot ignore our members' views.

"They voted in great measure to say no so we have now given the company some time to review its position and we are available for further talks at any time."

Mr Woodley said the Coventry plant had been a "model" of good industrial relations and the car it produces - the Peugeot 206 - was selling extremely well.

Unions had been negotiating a deal to give Coventry workers similar conditions to those enjoyed by Peugeot employees in France where a shorter working week has been introduced.