Honda is trying to raise the age of retirement to 62 at its Swindon plant in order to prevent a crisis in its pension fund.

The suggestion will be made to workers in the first round of employer/union pay negotiations undertaken by the carmaker since it began making cars in Britain 17 years ago. It is thought to be the first time a major employer in the UK has tried to reduce pension liability by raising the retirement age.

The group also wants to impose a 2.2 per cent pay rise on staff – below the current inflation rate of 3 per cent.

Union Amicus is telling the 4000 Honda workers at the plant to reject the proposals.