Sources at Peugeot's Ryton plant say the company will revise its pay-offer to avoid strike action.

In a postal ballot workers have voted – by just one vote – in favour of industrial action in protest against the latest pay offer. Negotiations between the main union, the T&GWU, and the firm are set to resume tomorrow following the Easter break.

The T&GWU says it now has a mandate to strike, but is waiting for a response from Peugeot on the postal vote, carried by 1,176 votes. The union has to give seven days notice of a strike taking place.

On Thursday, the company said the had made its “final offer”.

But a source at Ryton said: “If I had a pound every time a company said it had made a final offer and then, facing strike action, came back with another offer, I'd be a rich man.”

The union objects to the company linking the 4.3% pay increase in year one and inflation-plus-0.7% increase in year two to a change in the August shutdown period.