JLR union rejects pay package, threatens strike

November 13, 2014 11:36 pm | Updated 11:36 pm IST - LONDON:

The logos of carmakers Tata Motors of India (L), Jaguar and Land Rover (bottom R) are seen on the first media day of the 78th Geneva Car Show, in this file combination picture from March 4, 2008. Chinese demand for its luxury Jaguar Land Rover (JLR) models propelled fourth-quarter net profit at Tata Motors, capping a bumper year in 2011 for the Indian automaker.   REUTERS/Denis Balibouse/Arnd Wiegmann/Files (SWITZERLAND - Tags: TRANSPORT BUSINESS LOGO)

The logos of carmakers Tata Motors of India (L), Jaguar and Land Rover (bottom R) are seen on the first media day of the 78th Geneva Car Show, in this file combination picture from March 4, 2008. Chinese demand for its luxury Jaguar Land Rover (JLR) models propelled fourth-quarter net profit at Tata Motors, capping a bumper year in 2011 for the Indian automaker. REUTERS/Denis Balibouse/Arnd Wiegmann/Files (SWITZERLAND - Tags: TRANSPORT BUSINESS LOGO)

A pay-and-pension package offered by Tata-owned Jaguar Land Rover (JLR) has been overwhelmingly rejected in a ballot of its workers by the union Unite.

After the results of the ballot were announced on Thursday, the union called for the management to re-negotiate the terms of the package or face industrial action.

JLR had offered a 3.6 per cent pay increase plus a bonus payment of £825 in the first year.

A decisive majority -- 96 percent of the workforce of 14,000 – across the company’s five plants rejected the deal, as it “failed to recognise the contribution of workers to last year’s profits of £2.5 billion, and this year’s record breaking first quarter profits of £1 billion”, a Unite press release said.

“Anger is also mounting over the dilution and threatened changes to the final salary scheme including £240 million worth of pension cuts, despite pension changes to the final salary scheme being agreed with the workforce two years ago,” Unite said.

The Union says it will take new recruits six years before they reach 100 per cent pay rate for the jobs they are in, and “which isn’t consolidated or pensionable, will gradually replace pay rises that attract company pension payments over the coming years.”

Last month, at the opening of JLR’s new engine plant near Wolverhampton, Executive Director Mike Wright had said it was “unfortunate” that trade unions had rejected what JLR deemed a “very generous pay offer.”

“The workforce made huge sacrifices and endured pay freezes during difficult times to ensure that Jaguar Land Rover is the success it is today,” Unite National Officer Roger Maddison said in a statement after the ballot.

“With the company making a staggering £10 million profit a day, it is no surprise that the workforce is angered by pension cuts and a pay offer that falls short in recognising their role in that success,” he said.

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