A typical BMW worker at the car plant in Cowley will see their basic wage jump 3.8 per cent next year following a pay ballot.

The 3,150 full-time workers who build the award-winning Mini are also guaranteed a Success Bonus of at least £300, which could rise to £400 or more if the plant's production and quality targets are met.

Human resources director Dr Marc Pastowsky said: "After two months of intensive negotiations, and a number of offers made by the company to the plant's unions, we are pleased that our associates have voted to accept the two-year deal with an increased emphasis on performance-related pay.

"For over 30 years associates in BMW Group Plants in Germany have shared in the company's achievements through the Success Bonus.

"It is our aim to increasingly allow our associates at Plant Oxford to benefit from the success of the company and the Mini and this agreement is a further step in this direction."

The ballot saw an 88 per cent turnout and 67 per cent of the workforce voted in favour of the offer.

The agreement means that a grade two worker will receive £20,542 for a 37 hour week for the year from November 1 2004 to October 31, and £21,158 in 2006.

Plant convenor Bernard Moss, of the Transport & General Workers' Union, said: "The trade unions recommended the company's final offer to its members, and we're pleased with the result.

"This agreement secures back pay from the start of the negotiations in November, which will supplement pay packets in January.

"When compared to some of the motor industry's deals agreed this year, this agreement with its base rate rise and bonus guarantee ranks among the industry's best."

The agreement also covers 2006 when workers will see a further rise of three per cent or a rise in accordance with the Retail Price Index -- whichever is the greater.

Once again they will also receive a minimum bonus of £300, rising to £400 or more if 100 per cent of targets are met.

Dr Pastowsky added: "After the success of this year's bonus scheme, the company is keen to be able to continue with the variable pay scheme allowing associates to be rewarded for their achievements.

"The plant's achievement of 125 per cent of its bonus targets means that associates will be receiving £325 this year."