THE threat of strikes against car giant MG Rover has ended after workers voted overwhelmingly against taking industrial action in a dispute over pay and hours.

Union leaders said the vote had averted a possible "catastrophe" at the Longbridge company, in Birmingham.

Members of the Amicus Union voted by 85 per cent against strikes while members of the Transport and General Workers Union rejected action by three to one.

The company has offered a 2.5 per cent pay rise but there has been conflict between the two sides over flexible hours.

Sir Ken Jackson, general secretary of Amicus, said: "Common sense has prevailed. Strike action would have been a catastrophe for the company.

"We have to go back to M G Rover now to resolve the problems between us and make sure the company has a long-term future."

A spokeswoman for the TGWU said the union was "delighted" that a potentially damaging industrial dispute had been averted.