Workers at BMW's Mini plant in Oxford have overwhelmingly rejected what unions called a 'strings attached' pay offer, raising the prospect of the first strike since 1984.
Unite the Union said that in a consultative ballot of almost 2,000 workers, 97% rejected the company's "attempt to force the majority of the workforce to accept a basic pay increase of just 2.21%".
According to Unite, the remaining elements of the deal included an increase of 1.79% for working an extra 30.1 hours a year. But rather than giving the workers the choice on whether or not to sell the extra hours which make up part of their rest period, a statement said, BMW was making it compulsory.
The company is also claiming it is offering a 2% team bonus, but Unite says the most the majority of the workforce can earn is 1.3% of salary.
BMW has offered further talks which the union welcomed although preparations for a strike ballot will continue.
Unite national officer Roger Maddison said: "There are more strings to this deal than a puppet show and the workers at BMW will not accept it. The truth is that BMW has made a pay offer of just over 2%, the rest of the deal comes with significant strings attached. The union never closed the door on talks and we are happy to get back around the table but we are also making preparations to ballot our members for strike action.
"The majority of the workforce works 11 hour shifts, and more and more productivity demands are being made by BMW. Rather than try to claw back every penny it can, BMW should be treating its workforce with dignity."
Plant Oxford employs 4,500 people working three shifts, seven days a week.
The last strike at the site was in 1984, when it was under Rover ownership.