WORKERS at Cowley’s Mini plant say changes in the way BMW hires agency workers will mean they earn about 20 per cent less than company employees.

They are also unhappy about plans to shut off the final salary pension scheme to new entrants.

Workers’ union Unite yesterday said thousands at the Oxford factory could refuse to work overtime in protest.

Under new Government rules, agency workers are entitled to the same pay and rights as company employees after 12 weeks unless, as BMW plans, agencies employ staff directly using a contract.

But BMW says the new agency workers will have better contract rights.

The plant employs some 3,000 full-time staff and 550 agency staff who will not be affected by the plans. About 850 agency staff were axed in 2009.

BMW is consulting on the pension plans. The new agency agreement starts in January.

The union said the move would affect about 1,000 agency workers due to be drafted in 2014 when a new model is launched.

About 100 Unite representatives will meet to discuss possible action including a ballot for industrial action.

Oxford East MP Andrew Smith said he supported the call for equal pay.

He added: “The pension scheme at the plant has long been a strong and popular scheme and it’s one of the good things about working at the plant. Any move to abandon the final pension scheme would be tragic.

“I urge constructive and close negotiations between the union and BMW.”

BMW spokesman Rebecca Baxter said many other companies were using agency staff this way and there were benefits for the workers.

When asked if agency workers would earn about 20 per cent less under the plans, she declined to comment directly.

She said: “While there will be a difference in pay, future agency workers will have greater contractual benefits.

“Agency employees will benefit from the increased security of a permanent contract with their agency, including the right to redundancy pay, a guarantee of payment between assignments and increased holiday entitlement. They will also benefit from the Plant Oxford team bonus.”

Unite national officer Roger Maddison said: “Yet again a wealthy company has jumped on the coalition Government’s band wagon by attacking pensions and eroding employment rights.”