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| Jaguar Land Rover |
More than 12,000 Jaguar Land Rover workers are to get a “double your money” pay rise of 6.1 per cent next month – because inflation has jumped to a 20-year high.
Thousands of hourly paid and staff employees across Solihull, Castle Bromwich, Gaydon, Whitley and elsewhere will qualify for the bumper pay rises after unions won an inflation-linked deal just a year ago.
The agreement was for a five per cent increase from November 1, 2010, and three per cent or the Retail Price Index plus 0.5 per cent from November 1 this year.
With the Government’s RPI measure at 5.6 per cent, its highest rate since June 1991, workers at the Midlands biggest manufacturer will now receive more than last year’s five per cent rise, itself hailed as an industry-leading deal.
Many hourly paid engineers on around £35,000 a year will now see their pay rise by over £2,000 a year when the new 12-month deal kicks in on November 1.
Roger Maddison, national officer for Unite, said: “Last year, we could have settled for three per cent for Year Two, and that would have been a popular deal. Three or four years ago, we had zero inflation and now it is nearly six per cent.
“If you are going to do a long-term deal, you have to make sure that you are protected against inflation.
“You could look at this as a positive sign – we managed to protect the workers at Jaguar Land Rover.
“But you have to remember that it is desperate times for those people who have not got inflation protection for their pay. I believe that everybody should have inflation-linked pay rises.”
The two-year pay deal unveiled a year ago was part of a package that saw JLR reverse plans to close either Castle Bromwich or Solihull and announce a £5 billion package of investment, with new models. The two-year offer was agreed following a 74 per cent vote in favour by workers.
A JLR employee bulletin at the time said: “The company’s offer of a two-year pay and conditions agreement provides much needed predictability and stability for the company and employees.”
According to the UK findings of Aon Hewitt’s 2011-2012 European salary increase survey, salaries rose 2.5 per cent in 2010, 3.1 per cent this year and were projected to increase 3.2 per cent in 2012.
* The number of cars made in the UK accelerated ahead last month, it has been announced.
A total of 136,051 cars were produced in September, a 7.5 per cent increase on the September 2010 total, the Society of Motor Manufacturers and Traders said.
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