Honda's 900 workers at its Swindon factory will lose around £63 as a result of the carmaker's decision to lay off an entire shift, according to the Amicus union.

ACAS-arbitrated negotiations between Honda and Amicus, the manufacturing union, on pay and pension conditions are continuing. Amicus has rejected a 2.7 per cent pay offer made by Honda.

Amicus says 150 to 200 temporary workers at the plant will lose their jobs to make way for the full-time Honda workers whose shifts have been cut.

Derek Simpson, joint general secretary of Amicus said: "Honda's claims that these moves are to maximise efficiency are highly dubious, as are the supposed levels of loss and poor productivity at the plant.”