UNION officials at Peugeot-Citroen today raised the threat of industrial action to fight the French car giant's shock decision to close its UK factory with the loss of 2,300 jobs.

French unions are expected to be contacted to seek solidarity support as part of protests against the planned closure of the Ryton factory in Coventry.

Shop stewards from Amicus and the Transport and General Workers Union will meet at the factory this morning to decide how to respond but there was said to be a mood of anger and defiance.

Ballot

One union source said the stewards will discuss plans for a ballot on industrial action which could cripple production of Peugeot's 206 model.

The union official said: "The mood is one of anger and disgust at the way the company has done this and the fact that Ryton is being painted as the most expensive plant in Europe.

"We reject that argument out of hand because the company has made it the most expensive plant by sourcing all its parts from France.

"We have a verbal agreement with the French unions that any closure or attack on one plant is an attack against everyone and we will be seeking solidarity action."

Production of cars at Ryton was at a standstill today after workers were told not to report for the start of their day shift at 6am because of a series of mass meetings being held at the plant.

The company said it planned to restart production later today, but a spokesman said workers were being given time to digest the closure news.

No cars were built on the afternoon shift yesterday after the company's chief executive Jean Martin Folz flew in from France to say that Ryton will close in two stages by the summer of next year.

Pledge

Trade and Industry Secretary Alan Johnson will travel to Ryton today to meet workers, union officials and company managers.

He pledged to put in as much effort to help Peugeot-Citroen workers find new jobs as happened last year when 6,000 workers were made redundant following the collapse of MG Rover in Birmingham.

Mr Johnson hit back at complaints from Amicus that it was cheaper to sack workers in this country because of weak labour laws, arguing that the UK had record levels of employment.

"This has been terrible news for the workforce and their families but the argument that it is easier to sack people and get rid of them here is not true. It is not quicker to get rid of people in this country," he said on BBC Radio 4's Today programme.

"It is getting the balance right between protecting workers and creating a situation where it is so difficult to shed jobs that companies don't recruit in the first place."

Mr Johnson said Peugeot-Citroen had cut two shifts from factories in France last year and one shift from a plant in Spain.

The minister said the UK had a strong economy, with eight major car manufacturers operating in this country including some which were expanding, such as Nissan, Land Rover and Mini.