The threat of industrial action looms at Jaguar today after unions called a mass meeting of workers. Staff at the luxury car maker's Halewood, Whitley, Browns Lane and Castle Bromwich sites have already rejected the carmaker's 2002 pay offer and unions will tomorrow hold mass meetings to inform workers that it intends to launch industrial action.

The trade union Amicus says the two year-deal - worth 4% this year and a minimum of 3% next year - contains “unacceptable strings”. They include the introduction of performance-related pay and compulsory unpaid overtime of up to one hour a day.

Amicus national secretary Terry Pye says of tomorrow's meetings: "We are holding them to inform Jaguar staff of the intention to head to an industrial action ballot over the unacceptable strings that the company are insisting on including in this year's pay deal.

"Amicus members have already rejected the offer in a consultative ballot across the four sites. It is not acceptable to include compulsory unpaid overtime and performance related pay as part of the pay deal.

"Feelings are running strong across the four sites with a surge in new member applications indicating wholesale support for the stance that we are taking."