Nestlé has threatened to sell its Perrier water unit if an industrial dispute with workers in France cannot be settled.

The Independent on Sunday said workers and management have been at loggerheads since November, when the Nestlé Waters division unveiled a shake-up of employment practices.

A Nestlé Waters spokesman said the group was confident that a solution would be reached. But warned that the Swiss food giant would sell the company should that fail to happen.