Management and unions at BMW are still locked in talks, three weeks after workers rejected an eight per cent pay rise.

New negotiations entered a second day today with union officials admitting slow progress was being made.

They said the main sticking points involved the working time account system, where hours are "banked", and pay generally.

Staff are unhappy with the banked hours system. If they are sent home because of production problems, they have to make up the time later, at a date set by BMW.

Transport and General Workers Union convenor Bernard Moss said that if the talks broke down without a resolution, the most likely outcome would be an overtime ban and a refusal to operate the working time account.

He added: "It is heavy going but I would have thought the discussions would conclude soon.

"Then the offer has to be put to the shop stewards and members."

The initial pay deal was rejected by 65 per cent of the workforce. But with 400 staff not voting, Mr Moss said it was difficult to predict how a new offer would be received.

BMW management originally said that there would be no improvement to the offer.