Scores of workers are due to go on strike next week at a global engineering plant.

The shop-floor staff at American-based Phinia are set to down tools at the Gillingham factory following a long-running dispute over work conditions.

They have been issued an ultimatum by bosses to end their current employment contracts with an offer of of new jobs under new terms – a practice known as “fire and rehire”.

The process is controversial because it forces employees into a difficult choice – accept less favourable conditions or lose their jobs.

About 650 people, engineers and shop floor employees work at the site in Courteney Road.

On Monday, workers will be picketing from 7.30am as the company plans to remove staff’s paid lunch break. The strike is set to last until January 30.

Workers formally balloted for a walkout in December after notice was issued to withdraw the half an hour lunch break – an agreement which was negotiated between management and unions in 2004.

Further walkouts are planned for February 5, 13 and 26. A continuous ban on overtime will be in place until further notice.

Phinia, which took over the brand Delphi and manufactures fuel and electrical systems for the automotive technology industry, has suffered a massive drop in orders worldwide.

Management wants to implement changes to shift patterns for its hourly-paid workforce as part of an overall money-saving exercise.

‘Phinia should be ashamed of how its treating its workers...’

Negotiations between Unite the union which has 80 plus members and bosses have reached a stalemate.

Juliana Sanchez, corporate communications manager for Phinia, said: “Of the 651 people who work at the Gillingham site, only a small proportion of our hourly employees are involved in industrial action taking place on 29th and 30th January, as well as dates in February.

“We will take all measures to minimise disruption for our employees and we do not expect any impact to our customers over this period. No other PHINIA locations are involved.

“Conversations started in September of 2023, and the company has been following appropriate protocols for engaging with the union, as well as keeping employees informed along the process.”

A shop floor worker, who has worked at the site for 30 years, said it was the first time strike action had been taken.

The employee, who wished to remain anonymous, said: “They are targeting the lowest paid workers.

“Over the years we have lost out on pensions and decent pay raises.”

Unite general secretary, Sharon Graham, said: “Phinia is a globally recognised powerhouse thanks to its dedicated workers. What the company is doing is wholly immoral and the threat to fire and rehire its workers is entirely abhorrent. This is all about the company seeking to further boost its profits, at the expense of its employees.

Unite is now entirely focused on defending the jobs, pay and conditions of its members and the workers at PHINIA will receive the unions complete support.”

Regional officer Rebecca Johns-Lawrence added: “Phinia should be ashamed of how its treating its workers. A paid lunch break was achieved through past negotiations and Unite will simply not allow hard won rights to be undermined by a company seeking to further bolster its bank balance.”

Phina said it was “regrettable” that Unite was refusing to negotiate because of the company’s decision to “dismiss employees and offer immediate re-engagement on new terms”.

In a letter to staff, managers said: “We are experiencing a massive drop in orders from our major customers, sadly orders continue to fall each week.

“Our current employment terms are simply not equitable or tenable across the site for economic reasons and reasons of consistency and fairness.”

The consultation process ended on Saturday, January 14, and employees have been given 12 weeks' notice to decide whether to accept or reject what’s on the table.

For those who refuse to sign up for the new deal, their employment will end. For those who agree, the new arrangement comes into effect from Monday, April 15.

Phinhia employs about 300 people at the Gillingham site. Engineers are not affected by industrial action.

The company’s headquarters are in Michigan and it was founded last year. It has 12,900 employees across 44 locations in 20 countries.