UK: Pay deal lifts strike threat at Jaguar Land Rover
JLR has just opened a new engine plant in Wolverhampton
British workers at Tata Motors' Jaguar Land Rover have voted by more than 77% in favour of a two-year pay deal that lifted the threat of industrial action and saw each receive a GBP825 Christmas bonus.
The Birmingham Mail said the majority vote across the Solihull, Castle Bromwich, Halewood and other factory sites finally removed a potential strike threat following weeks of shop floor uncertainty for the Midlands' biggest automaker.
The revised deal had been unanimously recommended for acceptance by the unions following weeks of controversy and warnings of industrial action over fears of a GBP240m pensions raid by JLR.
The report said the new offer would provide a 4.5% pay increase in the first year along with a one-off lump sum payment of GBP825, plus a rise of 3% or RPI plus 0.5%, whichever is the greater, in year two.
A shopfloor source told the Mail: "The bonus will be paid on Christmas Eve and there will also be a lump sum backdated to 1 November paid on 22 January which will be a decent payment for workers in the New Year."
Recommending acceptance, an employee bulletin obtained by the Mail said the general increase offered in year one of the deal was 2.2% above the current rate of inflation.
The bulletin said the new deal would see semi-skilled production operatives reach 100% pay rates after five stages while all skilled employees would receive 100% pay and a permanent contract from January 2015.
It also stated: "There are no proposals relating to pensions in our 2014 pay and conditions offer."
The Birmingham Mail noted unions had accused JLR of attempting a GBP240m pensions raid to fund the original three-year deal, which was rejected in a 96% majority vote.
Meanwhile, holiday bonuses will be increased by GBP10 to GBP380 for 2015 and by GBP10 to GBP390 for 2016.
A company statement cited by the Mail confirmed the vote.
"Jaguar Land Rover’s workforce has voted to accept its 2014 pay and conditions offer," it said.