British premium automaker Jaguar Land Rover, a wholly owned subsidiary of India’s Tata Motors, has announced it struck a bargain about salaries and pensions with union officials.
JLR was facing the threat of industrial action form its UK-based workers after the union representatives rejected an initial offer and the carmaker now has a deal after revising their proposals – with the union officials now recommending staff to end the work dispute. The wage negotiations succumbed back in October and subsequently 95 % of the staff voted to reject the initial offer last month – as they feared pensions would be cut. With the ballot unanimously rejecting the deal, the unions moved to threaten the automaker with a strike.
Originally, the workers deemed the offers to increase payments by at least 3% each year for the next three years and some changes to the pensions terms unacceptable. After years of losses, JLR has doubled its pretax profits to 2.5 billion pounds in the year ended March 31. Now, the new proposal calls for a pay rise of 4.5% in the first year of a two-year deal, plus a bonus installment of 825 pounds per employee. In the second year the staff would receive the higher of either the Retail Price Index measure of inflation and 0.5% or a 3% wage hike. The new deal affects around 15,000 persons in the company’s British workforce of more than 26,000 members, but the proposal is still subject to a worker vote before being officially approved.