HUNDREDS of Ford workers in Southampton are set to benefit from an inflation-busting pay deal worth more than seven per cent over the next two years.

Union leaders representing thousands of Ford vehicle workers across the country today hailed an agreement on the pay deal as a "benchmark for British industry".

Other "serious" improvements include enhancements of the company's final salary pension scheme as well as better maternity and paternity payments.

Ford was already an industry leader paying 40 weeks maternity pay, well above the statutory level, but this will now be increased to 52 weeks.

Tony Woodley, deputy general secretary of the Transport and General Workers Union, said Ford was sending a clear message that it wanted to keep and improve its final salary pension scheme, unlike a growing number of UK companies which have axed similar schemes this year.

"We have no hesitation in recommending this above inflation offer which will also improve pensions and increase family friendly payments," he added.

The deal is worth four per cent over the next year followed by an increase of three per cent or the rate of inflation plus 0.5 per cent, whichever is higher, in year two.

Mr Woodley said the deal was worth 7.2 per cent.

"It is as good a deal as we have achieved in the motor industry. Here we have a major company deciding it wants to take a different view on pensions to other firms.

"On wages, on pensions and on family friendly issues Ford is setting a benchmark for British industry."

The deal covers workers at Ford plants across the country including the Swaythling plant, which employs more than 1,000 people and makes Transit vans.

Workers will now be consulted on the offer.