The threat of strike action continues to hang over Peugeot's Ryton plant after the company resisted union pressure to revise its pay offer.

Talks between Peugeot and the Transport and General Workers Union to resolve the dispute surrounding proposals to end the current fixed three-week summer holiday have been adjourned.

Union members voted in favour of industrial action in a pre-Easter ballot.

Tony Woodley, T&G chief negotiator, said: "The ballot results showed that the workforce at Ryton was very unhappy with the company's offer. Peugeot realise that. We are disappointed therefore that, in spite of our call for more negotiations, the company did not move to allow us to make progress.

"At this stage, without the guarantees that will allow our members to enjoy their leisure time during the summer break with their families a settlement seems unlikely."

The T&G and Peugeot are to resume talks on May 8.