Jaguar Land Rover staff have been offered a guarantee of no compulsory job losses for the next two years - if they agree to a pay freeze and a four-day week.
Union leaders have agreed the proposals with JLR's owner Tata, which cut 450 jobs as recently as January. Staff will vote on the scheme - which would freeze pay for a year - in the next few weeks.
Jaguar Land Rover employs around 15,000 workers in the Midlands and Merseyside. Unions are said to have requested a deal to secure jobs in the light of falling sales and the global recession.
"We have had a number of constructive meetings with the unions to reach this agreement," said a JLR representative. "The unions recognise the severity of the situation and the need to take action to achieve further cost reductions while avoiding further redundancies."