Talks between Ford’s UK off-road manufacturing subsidiary, Land Rover, management and Trade Union representatives have concluded in a two year pay deal for the workforce, based primarily at the company’s Solihull site.

The main details of the agreement are as follows:

· A 4.25 % increase in basic pay for the first year, effective November 1 2001, with a further 3.5% in the second year.

· The introduction of a new employee development programme, under which the company will provide funding for personal training courses not connected to the workplace.

· A continuation of the reduced working week, within which employees work a 37 hour week and accumulate one hour each week as additional time off.

· An extra day’s holiday for those with 15 years service, rising to a further day for 20 years service, together with an increased annual holiday bonus which rises from £265 to £275 in the first year and £285 in the second year.

· Significant enhancements to Land Rover maternity pay, which now rises to 40 weeks on full pay. Paternity leave rises from five to ten days.

“The new agreement comes as a result of the substantive improvements to productivity and quality already achieved by the team at Solihull,” said Director of Manufacturing Marin Burela. “We wanted to reward employees for their commitment, but at the same time, we need to recognise the uncertainty of the economic climate, coupled with the intense competition in the luxury segment.

“The new development programme will help employees enhance their skills outside the workplace. We believe the changes to the maternity and paternity arrangements reflect an increased focus on the importance of the family,” added Burela.

To view related research reports, please follow the links below:-

Automotive regional report: Western Europe

The world’s car manufacturers: A financial and operating review (download)