WORKERS at Oxford's Mini plant will be sacked and told to reapply for their jobs if they reject BMW's final pension offer, the Oxford Mail can reveal.

In a letter seen by this newspaper, Union leaders said if the latest terms were knocked back, and notice given of further strikes, the company would 'terminate' the contracts of about half its 4,500-strong workforce on the defined benefit scheme.

The decision has been made at the top of the German car manufacturer in Munich following months of dispute over the decision to close the final salary scheme.

The move is also a hammer blow for Unite, after senior officers failed to agree a deal for more than 2,000 workers at the Cowley plant in the latest round of discussions.

Last night, staff affected told the Oxford Mail morale on the production lines had 'hit rock bottom'.

One worker said he felt the workforce had been 'steamrollered' by the company, adding 'the attack' on pensions was just the beginning of more changes to come.

He added: "The have just steamrollered us. It's disgraceful. When we first started here a lot of people came because of the pension security in later life.

"Now its just been taken away. You have the threat of Brexit - is this the beginning on the end? I do not know."

Another said: "Everyone is down and the morale is low. We did not know they could do this. We have been shafted.

"A lot of people have just had enough and are worried about what could happen. The offer will be accepted now.

"The union have kind of let us down the last couple of weeks. It's really disappointing."

The workforce was told of the ultimatum by union reps on Monday and a ballot for members to vote in favour or against the final offer will begin on Friday and end on July 7.

In the letter, signed by deputy general secretary Tony Burke and other bosses, the union said 'full and frank discussions' had been made, but that the company said their last offer 'would not be improved on'.

It added: "The company have advised the PSJNC and Unite officials that they will during the briefings advise members that if the proposal is rejected in the ballot and Unite issues notice of further industrial action, they will give notice to all members of the DB scheme to terminate their contract and re-engage on new terms of employment, which excludes the offer of transition payments."

It means the 're-shaped' offer gives employees the option of taking a cash payment of £22,000 paid in three instalments - 50 per cent in October 2017, and 25 per cent in 2018 and 2019.

Alternatively, workers can opt for a payment of £25,000 paid over the same period into the defined contribution scheme.

BMW said in addition, early retirement options and ill-health benefits have been 'clarified' and all employees will be given a contribution towards independent financial advice.

In a statement, BMW said: "The company is keeping all staff fully informed and we await feedback following a further ballot.

"We believe this final offer to be fair and in the long-term interests of both the company and all our employees."

Workers said they were shocked at the company's hard-ball move, but Justin Godbolt, a partner at Oxford Employment Law Solicitors, said so long as BMW could legally terminate the contracts of workers and offer them a 're-engagement' on the terms agreed.

He added: "If the employee does not accept the change [in contract], the dismissal would be fair, providing the employer had gone through the correct processes.

"It's the ultimatum."

The pension dispute, which had rolled on for almost a year, began when BMW said it wanted to close its 'defined benefit scheme' by October.

The company, which has operated at Cowley since 2001, claimed the scheme was 'unsustainable and unaffordable' and said the 2,000 workers could move to a 'defined contribution' pension.

Union Unite branded offers made earlier this year as 'insulting', claiming some workers could lose out on £160,000 in retirement income.

After a series of walkouts which halted Mini production, further strikes were suspended in May which resulted in the workforce rejecting another offer, ahead of the ultimatum.

Unite bosses said last night in a statement they were 'unable to recommend' workers accepting the final offer, but said it was the 'best that can be achieved'

They added: "Following further meetings with BMW a revised offer was put forward by the company. As with the previous offer, Unite is unable to recommend it, as it will mean different things to different people depending on the their circumstances."

The union refused to answer further questions.