Yesterday's 8.4 per cent pay increase for Mini workers at Oxford has upped the ante in this year's automotive industry pay round – putting strike-threatened Peugeot and Jaguar under pressure to offer more.

The 2,500 Mini workers' pay rise is spread over two years and comprises a flat £15 weekly increase in the first year and £10 a week the following year. Staff backed the deal in a ballot by 2 to 1.

Peugeot's worker at the Ryton plant near Coventry have voted overwhelmingly to reject the company's 7.3 per cent pay offer because of the linked proposal to increase staff contributions by 1 per cent.

Jaguar workers are currently being balloted for strike action in the wake of a 7 per cent pay offer. The package includes performance-related pay and no pay for the first hour of any overtime. The strike ballot closes on January 6.