Sukhjit Parma, 34, broke down in tears on Friday as he told the tribunal in Startford, East London, how he was threatened with assault, had Ku Klux Klan (a secret society of white people for persecution of blacks) graffiti scrawled on his pay packet and was sent to work in an area known as the ``punishment cell''.

He has been off sick since last month and has had to take extra security measures on the advice of police. A group leader at the plant was sacked last Friday and a foreman has been demoted.

Bill Morris, general secretary of the transport and general workers union, which represented Parma at the tribunal said it was the worst case of racial discrimination, abuse and harassment the union had ever dealt with.

He attacked Ford for failing to respond to complaints and called for an urgent meeting with thecompany's president.

A company statement said last night ``the company has accepted liability and apologises in respect of the case brought before the employment tribunal over allegations of racial harassment.''

The allegations have been fully investigated by ford and are being dealt with through the company's internal procedures.

``We are in discussions to reach a mutually agreeable settlement and therefore it would be inappropriate to make any further comment at this time,'' it said.

The tribunal was adjourned until next February.

Morris said complaints were made to the company several months ago, but it took action against two individuals only just before the tribunal was to begin. Police were called in to investigate some of the complaints but no charge was made.

He said there was a catalogue of events which gave a very clear and horrific picture of ``what has been happening. What we have seen is the tip of a very big iceberg of pain, suffering, humiliation and degradation and Ford stood byand did absolutely nothing.''

Steve Turner, the union's regional organiser, said ``this has been the most horrendous case of racial discrimination and victimisation I have ever dealt with.''

Parma first complained to the union in February last year and the incidents continued for several months before he went sick last month. Ford interviewed 50 workers before taking action last week.

Married with one daughter, Parma was told just before he went sick that if he gave any names of the harassers, he would ``have his legs broken.''

Morris said there had been a number of racist incidents at the plant in recent years. About 40 per cent of workers there are non-white, he said.