Union Secures Jaguar Land Rover Pay Deal

UK workers at Jaguar Land Rover (JLR) are to be balloted on a new pay offer, weeks after talks broke down and sparked threats of industrial action.

Staff affiliated to the union Unite had reportedly demanded a bonus and a salary increase of more than 3% over the next three years, arguing they deserved a better reward for their contribution to the firm's turnaround.

JLR, owned by Indian firm Tata Motors since 2008, has enjoyed a resurgence in profits - doubling in three years to £2.5bn - thanks to strong demand for luxury, especially in China, where it has just opened its first plant.

The carmaker, which built almost one in three of Britain's 1.5 million cars in 2013, said it had revised its original offer with a pay increase of 4.5% in the first year of a two-year deal, plus a bonus payment of £825 per employee.

In the second year, workers will receive the higher of either 3% or the Retail Price Index measure of inflation plus 0.5%.

Around 15,000 union members would benefit from the deal, according to Unite.

A joint statement from Jaguar Land Rover said: "A revised offer has been made by the company that will be unanimously recommended by Unite to its members."

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