Managers at BMW celebrated two major successes when the 200,000th Mini rolled off the production line, and industrial action was avoided when workers agreed a new pay deal.

The landmark chilli red-coloured Mini was given a last polish on December 16 and immediately handed over to the Oxford Children's Hospital Campaign.

It will now be raffled in a prize draw to raise money for a £20m children's hospital to be built at the John Radcliffe Hospital site in Headington.

The campaign is being heavily supported by the Oxford Mail.

The car is one of more than 150,000 Minis to be produced at the BMW car plant in Cowley, Oxford this year.

The German car giant stepped up production to reach the 200,000 target by the end of the year.

The results of a second pay ballot were also released yesterday, and industrial action was avoided by the acceptance of an eight per cent salary increase and other conditions.

TGWU spokesman Bernard Moss said: "Some improvements on the original offer were achieved. For example, there is now a minimum payment in year two for the company performance bonus.

"A better deal for people with long service has also been agreed."

Anyone with five years' service will get an extra one day's holiday increasing to two days for people with ten years, and three with 15.

He added that negotiations had also led to 100 extra agency staff being offered full-time BMW contracts, bringing the total number of contracts offered this year to 800.

There had also been changes in the company's "working time account", whereby hours can be "banked" to produce more flexible working times, with the introduction of quarterly planning.

The new agreement means that an average grade 2 worker will receive a basic £19,181 until October 31 next year, rising to at least £19,701 for the following year.

During the first year, workers will receive an extra £15 a week. During the second, they will get another £10 a week or a wage rise in line with the Retail Price Index -- whichever is greater.

They will also receive a new company performance bonus from the start of 2004. This will guarantee them another £2.50 a week (£130 a year) -- and more if targets are met.

BMW spokesman Angela Wrigley said those targets had not yet been set.

She said 70 per cent of those eligible had voted on the pay deal, 62.5 per cent of those in favour of the offer and 37 per cent against it.

In October this year, the workforce voted to reject the company's offer, although it had been recommended jointly by unions and management.

The 200,000th Mini was driven off the line by Paul Drayson, chairman of the Children's Hospital Campaign.

He said: "We are delighted that BMW Group has chosen to support the Oxford Children's Hospital Campaign. Their gift will help us to build a centre of excellence dedicated to providing children with the best care and facilities."

BMW Group's UK businesses have also agreed to donate £50,000 to the campaign.

Herbert Diess, managing director at the Oxford plant, said: "Mini's success in 2002 has been tremendous.

"We are on schedule to produce more than 150,000 Minis this year and I am delighted that one of them will go towards raising money for the new children's hospital."

BMW reached the 200,000 milestone despite problems earlier this month when 30,000 Minis built in Oxford were recalled for inspection because of potentially dangerous faults with the handbrake.

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