STRIKE action has been postponed at Peugeot's Ryton plant after the company increased its pay offer and removed some of the more contentious conditions attached to it.

The action was averted after Peugeot upped its pay offer from 4% to 5%, removed a 'personal recognition' clause and improved lay-off pay. The 3,000 workers involved will now vote again on the revised offer, but if rejected, an all-out strike will start on Tuesday (April 1).

In a statement, Peugeot said: 'It is in no-one's interests for a strike to take place and both management and unions have co-operated fully to take into account any remaining issues. We hope that this will be reflected in the ballot result.' Union leaders have made no official recommendation for or against the offer and some sources suggest that Labour Party officials have exerted pressure on the unions behind the scenes to avoid a strike during the election campaign.