Visteon Corporation has submitted a written formal proposal to the Unite union offering improved payments to former Visteon UK employees abruptly made redundant when three plants were placed in administration at the end of last month.

Some employees had earlier staged sit-ins at the shuttered plants in Belfast, Wales and Essex. Some workers had transferred from Ford when Visteon took over parts plants in the UK.

As outlined to the union on 15 April, the company's proposal provides additional payments to the former employees, with the majority receiving immediate cash payments equivalent to 16 weeks of their previous pay.

Over time, their total payments would reach the contractual level that would have applied in a redundancy situation prior to Visteon UK entering administration, the supplier said in a statement.

Visteon UK, consisting of three manufacturing plants, was placed into administration on 31 March after years of cumulative losses totalling GBP800m to the end of 2008.

Visteon Corporation said it made numerous attempts over several years to work with the union and workforce to agree to restructuring plans to allow the business to be globally competitive, retain employees and have a viable future but the efforts were unsuccessful.

Visteon UK is now managed by the administrator, accounting firm KPMG.

Visteon workers were promised 'lifetime protection'