BBC News Online: Business

Goodyear axes 500 jobs

The redundancies will come after workers overwhelmingly rejected a pay and conditions offer, even though the deal had been recommended by the trade unions.

"This decision by the workforce means that it will be extremely difficult to build a future for the plant," Goodyear said in a statement.

The managers and the trade unions had spent eleven months hammering out the deal which was rejected in a ballot by four votes to one.

Offer rejected

Under the deal, the job losses would have been limited to just under 300 in exchange for workers accepting a cut in pay and more work.

Mr Shutt's union had recommended that its members vote for the deal.

"It was a very difficult decision for (the workers) to make: it was like asking them to choose having the plague or cholera.

"I am disappointed, but we will have to live with it. We are not going to lie down and die, we will still battle for the jobs of our members," Mr Shutt added.

"The problem now is that company decisions aren't made in Wolverhampton. They are made in America where they have no sentiments for Wolverhampton," added Mr Shutt.

Union bosses will now discuss their options with members and they are seeking urgent talks with the management at the Stafford Road plant.