Workers at the Peugeot plant near Coventry will hold a one day strike in February in a dispute over pay.

The strike will be held on 13 and 14 February because of different shift patterns.

Members of the Amicus and the Transport and General Workers Unions (TGWU) at Ryton voted to take action after overwhelmingly rejecting the company's pay deal.

Peugeot said its offer was worth an average of 7.3% over two years.

Damaging dispute

But the TGWU claimed the deal was only worth between 3% and 3.5% in the first year, and less than that in the second year.

Union officials claim the deal falls short of other agreements in the industry.

Dave Osborne, TGWU national secretary for the car industry, said: "The company should take notice of the wishes of the workforce who are seeking an improved offer.

"The unions are ready to talk at any time and we urge Peugeot to return to the negotiating table to reach a settlement and avert what could be a damaging dispute."

But Peugeot says the number of people supporting the strike only represents 40% of the workforce and has warned strike action could seriously threaten future investment and employment prospects.

Ryton needs at least �250m of improvements to remain competitive.