The Transport and General Workers Union (TGWU) says the deal, worth about 7% over two years, "is not good enough".

Deputy general secretary Tony Woodley said Peugeot's plant at Ryton, Coventry, was one of the most productive, profitable and efficient in the company's European operation.

"The workforce has delivered and they are entitled to forward to sharing the rewards of success.

Tony Woodley: wants members to send 'powerful message'

"We wanted to make progress towards closing the pay gap of up to £50 a week between Peugeot workers and most other workers in the car industry."

"The company is preventing that.

"We will urge our members to reject this offer and send a powerful message to Peugeot to think again."

A company spokesman said: "We are extremely disappointed it has come to this.

"We need some time to reflect."

The company says it is also offering other improvements to the 5,000 workers covered by the pay deal.