BMW in bid to solve pay dispute at car plant

Fresh talks over a two-year pay deal for BMW workers who will build the new Mini have been held after the company's offer was narrowly rejected.

The German firm said it hoped to resolve the dispute at its former Rover plant at Cowley, near Oxford, after details of the offer were explained fully.

A company spokesman described the proposed deal as the best in the UK motor industry for the past 12 months, giving pay rises of at least 10% over two years.

In return, workers would have to agree more flexibility on working schedules, including the prospect of Saturday production when necessary, to boost productivity up to the level of BMW plants in Germany.

An element of performance-related pay would also be introduced under the deal.

A BMW spokesman in Munich said: "We are talking to union leaders and we are optimistic of resolving this in due course."

He said reports that BMW was threatening to close the factory because of the dispute were absolutely untrue.

The spokesman added that BMW was fully committed to producing the new Mini from early summer.

Around £230 million is being invested at Cowley in preparation for the new car.

The proposed pay deal was rejected by 51% of the workforce in a vote last week.