Workers at Jaguar could vote for strike action after they rejected a pay offer described as the “best ever” by management.

Bosses were stunned when they turned down a 4.25 per cent offer that was made earlier this month.

Union negotiators have yet to consider their next move. An AEEU spokesman said he was not surprised by the outcome of the ballot.

More than 2,000 workers at the plants in Coventry, Castle Bromwich and Birmingham voted against the deal, while 1,400 were in favour.

The extra payments for team leaders are thought to be the cause of the dispute as they are seen as “divisive”.