The code below resolved the issue. Apparently Jenkins is not comfortable with the contents of <arguments>
.
<configuration>
<extension>true</extension>
<npa>true</npa>
<bindingDirectory>${project.basedir}/src/main/xsd/</bindingDirectory>
<bindingFiles>global.xjb</bindingFiles>
<schemaDirectory>${project.basedir}/src/main/xsd/</schemaDirectory>
<schemaFiles>*.xsd</schemaFiles>
</configuration>