Peugeot workers in Coventry in strike ballot
Workers at Peugeot's parts division in Coventry are to be balloted on strike action over performance-related pay, the Unite union said.
Warehouse workers rejected a 4% offer for 2012 because the deal included plans to link part of the 2013 offer to individual performance, the union said.
Unite said a strike could cause serious disruption to the supply of parts.
Peugeot said at the end of pay talks in January the union had recommended members vote in favour of its offer.
More than 170 manual workers are based at the Tile Hill warehouse.
'Open to abuse'
Unite national officer for the automotive industry, Roger Maddison, said it was going to fight to prevent "the introduction of this unfair pay policy".
He added: "Performance-related pay is subjective and open to abuse, which can allow bosses to reward staff for the wrong reasons.
"In our experience, performance-related pay is not about rewarding workers fairly, it is often used as a way to keep the pay bill down, unless you're a city banker."
The union added it had informed managers that it intended to ballot members for strike action over "the company's insistence on introducing performance-related pay".
Peugeot said the company had offered assurances that any bonus element would not exceed a small proportion of the total pay offer and gave as an example the figure of "just 0.5% of the proposed basic pay increase, presently offered at 4%".
In a statement, the firm said its manual workforce had been offered a 4% basic pay increase with effect from 1 January this year and an improvement to sick pay.
The offer was conditional upon the company and the union working together to jointly agree the terms of an individual bonus for introduction in 2013, the firm added.
Peugeot said it had offered assurances that the union "would be fully involved in agreeing objective assessment criteria".
About 300 staff employees in the company's headquarters in Stoke Aldermoor, which includes administration, sales and marketing workers, had voted to accept the firm's offer, Peugeot added.