More than 500 workers at one of Shropshire’s biggest manufacturers are going out on strike after last-ditch talks to settle a bitter pay dispute broke down.

The majority of staff at GKN Sankey in Telford voted to reject a revised pay deal which would have seen them awarded a two per cent pay rise and a cash lump sum, union chiefs said today.

Workers are now refusing to do overtime at the auto car parts firm and an announcement on strike action – which could start as early as the end of next week – was expected later today.

Stefan Blasczyk, regional officer for the union Unite, said: “We can confirm the amended pay proposal was rejected by a majority following a ballot among staff.

“There will be an overtime ban in place from today, and the two unions, ­ and Unite, will be meeting to discuss potential strike dates.

Disappointed

“We are deeply disappointed we have not been able to arrive at any agreement, but the workers have been consulted and the majority have spoken.

“We have to give seven days notice before any strike action but we could be out on picket lines as early as the end of next week.”

Paul Richards, human resources director with GKN Sankey, said discussions with the unions were ongoing.

Staff were previously offered a two per cent pay rise but that was rejected and staff voted for strike action, or action short of a strike, on June 7.

Bosses initially refused to budge but then made the latest offer of a two per cent rise with a cash lump sum.

The company told workers it could not increase on the two per cent, but could afford a cash lump sum if it made efficiency savings.

The company announced last year that it was to cut 150 jobs at its auto structures plant at Hadley Castle.

It is not the first time staff and bosses have clashed over pay at the county plant, one of the biggest of its kind.

In 2005 workers voted against a pay rise which incorporated bonus scales and attendance, while in 2003 staff were balloted by unions and turned down an £11 a week pay rise offered by chiefs.

By Wayne Beese