The company is shedding 2,000 jobs

The deal to save the 360 jobs would have meant 1% of this year's 2.5% pay rise going towards reprieving the staff under threat.

Currently, about 1,600 jobs are at risk in Derby and a further 225 in Hucknall in Nottinghamshire.

Further announcements are also expected from the company.

The rejected deal included workers doing 51 hours unpaid overtime per year.

The next 100 hours would have been taken as time off in lieu.

Although Rolls-Royce executives said they were pleased with the deal, most of the 3,000 workers at today's meeting rejected the scheme.

Steve Lomax, from Amicus, the union formed from the MSF and AEEU, said: "It's a particularly dark day for the 360 people who will now be made redundant.

"It's a day that's going to live in their memories for a long time."

Union officials and management will now hold a further round of talks in an attempt to reach a deal.

Today's meeting also coincided with the anniversary 31 years ago when the company was declared bankrupt.

The company's plants in Bristol, and East Kilbride and Hillington in Scotland are also thought to be at risk of job losses.