Jaguar Land Rover and union agree on pay and pension deal

Article by Christian Andrei, on December 4, 2014

Jaguar Land Rover has reached an agreement with union representatives over pay and pensions. The deal will be recommended to it workers to settle a dispute that nearly prompted an industrial action. Talks over wages failed in October and more than over 95 percent of balloted staff voted “No” to the original proposal in November, fearing a reduction in pensions for some employees.

The vote also prompted unions to threaten industrial action. Management had originally proposed at least a 3-percent increase in pay in each of the next three years plus a one-year bonus, a union source told Reuters.

Jaguar Land Rover also had proposed some revisions to pension terms, according to a trade union source, although the carmaker recently said that pensions were untouched under the new agreement. Workers' representatives, however, determine that pay hike was not enough reward for their contribution to the carmaker, which was able to double its pretax profits in three years to GBP2.5 billion in the year ended March 31.

Jaguar Land Rover, has revised the offer, proposing a 4.5-percent pay increase in the first year of a two-year agreement, plus a bonus payment of GBP825 per employee.

In the second year, employees will either a 3-percent pay hike or the Retail Price Index measure of inflation plus 0.5 percent, whichever is higher.

Unions said the agreement will benefit around 15,000 members of JLR's workforce in the UK. The union has already recommended the agreement for balloting with JLR’s employees.

Topics: jaguar, land rover

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