Workers at Coventry's Massey Ferguson plant are to vote on whether to take industrial action after the firm's rejection of a union rescue package.

A union leader told BBC News Online on Tuesday that he was extremely disappointed the plan had been rejected at a meeting with managers.

Danny Carrigan, of Amicus, said the company was pressing ahead with plans to shut the plant in Banner Lane, which employs about 900 workers.

Now staff at the plant will vote on whether to accept redundancy or fight the plans through industrial action.

'Disappointing news'

Mr Carrigan said that managers from Agco, the American company which now runs Massey, had decided to move production to France.

"It was clear from discussions that as far as they were concerned they were pulling out of the UK and wanted to relocate," he said.

"It is very disappointing news. Now it is up to the workforce over the next day or so to decide whether to accept redundancy or to turn to industrial action."

The rescue package included government investment and possible changes in working practices.

Ceasing production

A spokesman for Agco said the firm would not be commenting until it had talked to its staff over the next few days.

Tractor production at the assembly plant will cease by the end of the year.

The high horsepower tractors produced in Coventry will now be made in Beauvais, near Paris.

The closure and the Europe-wide rationalisation of the company is expected to save Agco up to $25m by the year 2004.

Unions have expressed concern that one of the reasons that Agco was moving production to France was the failure of the UK to sign up to the euro.