Workers at Peugeot's Ryton plant near Coventry are to vote on whether to take strike action, after a last effort to resolve the dispute broke down.

Negotiations on Monday between union leaders and managers at the car company failed to resolve the dispute.

Last month, workers voted overwhelmingly to reject the company's latest pay deal.

Peugeot has described its offer as being worth an average of 7.3% over two years.

'Very disappointed'

However the T&G union disputes that, suggesting instead that the deal is worth between 3% and 3.5% in the first year and less than that in year two.

Peugeot says it is very disappointed with the outcome of Monday's talks.

The ballot on strike action will be held in January.