Talks were continuing today to resolve a pay dispute between union and management at BMW's Cowley plant, four days before the new Mini goes on sale.

The row centres on a new seven-grade pay structure for workers that BMW wants to introduce to replace Rover's three grades.

Under the plan, about 20 per cent of the plant's 2,200 workers are scheduled to move up a grade, but BMW says the workers will not receive any pay increase until they have been individually assessed.

The Transport and General Workers Union and management could not reach agreement yesterday.

Workers argued that they had been promised money they were now being denied and said feelings were running high. It is understood that tensions also exist over the extra time workers are expected to be at the plant.