More than 200 workers at DaimlerChrysler UK’s warehouse and distribution centre in Milton Keynes began industrial action at the start of the month in a dispute over pay.

DCUK says negotiations are continuing but it “has plans in place” to ensure the work-to-rule action will not affect its service to its franchised networks, comprising Mercedes-Benz, Smart and ChryslerJeep. A spokeswoman adds that parts supply has been maintained.

The members of the Transport and General Workers Union are in dispute with management over the ending of paid breaks and a three-year pay deal, which would have seen pay increased 1.5% in year one, then inflation minus 1% in the subsequent two years.

TGWU regional industrial organizer John Street says DCUK’s offer equates to a pay cut. “These cars are top of the range in the car market and our people are top of the range in logistics and distribution,” he says.

“If DaimlerChrysler wants to keep its reputation as a modern, go-ahead company, then it should think again about how it treats the workforce.”

DCUK confirms that it has been in pay negotiations with the Transport and General Workers Union since October last year.

“DaimlerChrysler’s aim throughout this annual negotiation period has been to work with the union to agree a new pay deal going forward. Unfortunately it has so far not been possible to reach a mutually acceptable agreement,” says its statement.

DCUK says that it would be unfair to all parties to comment further on the matter at this stage, but will release another statement in due course.