Works minister Margaret Hodge was embroiled in a row yesterday after appearing to suggest that workers made redundant by the collapse of MG Rover might have to consider taking jobs at Tesco.

Tony Woodley, general secretary of the Transport and General Workers Union accused her of failing to understand the strategic importance of the car industry and its skilled workforce. Bromsgrove's Tory MP, Julie Kirkbride, branded Ms Hodge's comments as "stupid and ill-informed".

The row blew up after Ms Hodge was asked by the Express & Star newspaper whether skilled Rover workers should go to work at Tesco, which is opening a store at Walsgrave in the West Midlands.

"Well, they will work all over the place - and there's a new brownfield development site in the West Midlands as well. I'm saying that some of the jobs are in Tesco, and they will meet the needs of some of the unemployed and people looking for work in the district," she was quoted as saying. She was speaking after the release of labour market figures showing the impact of the MG Rover lay-offs.

Yesterday, Ms Hodge said she had not said MG Rover workers should apply for jobs at Tesco. "In my interview I said that while we feel immense empathy for those who lost their jobs, there are a range of new job opportunities coming to the West Midlands.

"One example is the new Tesco Extra at Walsgrave, another is The Green business park to be built just a few miles from MG Rover's Longbridge factory.

"Already over 560 manufacturing and engineering employers have contacted us with some 5,000 vacancies."

She said her department was working closer with the MG Rover taskforce and bodies such as the Learning and Skills council to provide training and job opportunities.

"Already more than 1,000 former MG Rover and supply chain workers have been found work and more than 2,000 have joined training programmes."

Mr Woodley said that while supermarkets were important in the modern economy, the loss of skilled manufacturing jobs was something the government should be concerned about.

"Some government ministers clearly don't understand the strategic importance of the car industry and its skilled workforce," he said.