A DATE has finally been set for the ACAS arbitration process to begin between Honda's manage- ment in Swindon and manufacturing union Amicus.

June 4 will mark the final stage in the attempt to settle the dispute between the two parties over benefit, pay and pension conditions at the South Marston plant.

Amicus has already rejected a 2.7 per cent pay offer made by the company and is fighting an attempt by Honda to make a merit payment of 0.5 per cent eligible to only 35 per cent of the company.

Derek Simpson, Joint General Secretary of Amicus, said: "The half a per cent merit payment on offer from Honda is only applicable to one-third of the workforce and we want to make sure it is open to all.

"Last year there was no union recognition at the plant and Honda imposed a deal, so we're here to fight for more money for all."

Honda has already said it cannot afford to offer more money because of the £10.2 million it is ploughing into the company's pension fund to plug a £42.5 million hole caused by falling stock values.

The union is also separately opposing Honda's attempts to increase the pensionable age from 60 to 62 for Honda workers.

Honda announced during ACAS negotiations last month that it was scaling back production at Swindon plant from the beginning of June.

As a consequence, 900 workers will lose a 17 per cent pay allowance which amounts to £3,300 per annum. In addition, 150 to 200 temporary workers at the plant will lose their jobs.

A decision is expected from the ACAS arbitrator within two to three weeks of the meeting date.

Once decided, the pay and benefits award will be backdated to April 1, 2003.

According to Paul Ormond, head of corporate press and PR: "Obviously Honda's growth in terms of volume and employment is dependent on market conditions throughout Europe, although at this point the long term future for our Swindon-built products looks extremely strong.

"We will now work with our 4,000 associates at Swindon to ensure our longer term future continues to grow in the way that both they and the Honda family worldwide would expect."