Jaguar Land Rover employees reject pay offer

Almost 13,000 Jaguar Land Rover employees have rejected a three-year pay offer.

Jaguar Land Rover-2014

The car manufacturer has been urged to renegotiate with workers, after members of trade union Unite rejected its proposed pay offer and pension changes in a consultative ballot.

12,881 voted to reject the pay offer, with 454 voting to accept and 17 spoilt votes.

The ballot took place on 13 November after 96% of staff across the organisations five plants rejected the proposed pay deal amid claims that it fell short of expectations and failed to recognise the workforce’s contribution to last year’s profits of £2.5 billion and this year’s record breaking first quarter profits of £1 billion.

Jaguar Land Rover employees have also voted against proposed changes to its 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.  

The organisation’s pay proposal also includes plans for new starters to reach 100% pay after six years, as well as the introduction of a new bonus payment.

Unite members are concerned that the bonus, which is not consolidated or pensionable, will gradually replace pay rises that attract company pension payments.  

Roger Maddison, national officer at Unite, said: “The workforce has made huge sacrifices and endured pay freezes during difficult times to ensure that Jaguar Land Rover is the success it is today. 

“Their hard work, skills and commitment have helped ensure that Jaguar Land Rover has become a highly profitable world leader with a bulging order book.

“With the [organisation] 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. 

“Jaguar Land Rover needs to get back around the negotiating table and hammer out a deal that meets the workforce’s expectations and shares the rewards of the company’s success fairly. Otherwise we will be looking to ballot our members for industrial action.”

Jaguar Land Rover was unavailable for comment.