Car giant Nissan has called in the industrial conciliation service ACAS for the first time in its 19 year history in the UK.

The move follows a break down in pay talks which could see industrial action at the company's huge factory on Wearside.

The company, which has just launched a new version of the popular Micra, and the works council at its Sunderland plant, have failed to resolve pay talks which began in November.

Labour relations at the plant have been seen as exemplary over the past two decades.

Lower costs

The fight to secure the new Micra at Sunderland went to the wire, with Nissan bosses warning future work may be at risk if the UK government does not adopt the euro.

Wearside workers gave up overtime and took holidays instead as the plant battled to bring costs down.

One in four workers is a member of the motor industry union Amicus.

General secretary Derek Simpson said he will support Nissan workers looking to improve pay and conditions.

The company is offering a 3% rise over two years, but the works council wants double that.

Nissan pay is currently par for the industry, but recent pay deals vary widely.

Rover settled at 1.5%, while Land Rover and Jaguar agreed a 9% deal over two years.