Jaguar Land Rover workers vote in favour of pay freeze and shorter week
Jaguar Land Rover have received a double dose of good news as workers voted by a big majority to accept a package of job-saving measures and sales of the company’s XF car rocketed.
Employees agreed by 70 per cent to 30 per cent to accept a shorter working week and a one-year pay freeze to avoid compulsory job cuts.
Members of Unite and the GMB unions accepted the deal after being urged to vote in favour by union officials.
The proposals were agreed between union leaders and the company, which has cut some 1,800 agency, production and management jobs in response to the savage downturn in sales sparked by the credit crunch and the recession.
Workers at the company’s sites at Castle Bromwich and Solihull in the West Midlands and Halewood on Merseyside, took part in the ballot on the deal which is aimed at saving up to £70 million in costs.
The deal involves cutting the working week to four days, while pay will be frozen for one year in order to ensure continued production and avoid compulsory redundancies.
Other elements of the package include full mobility of labour across the Jaguar Land Rover West Midlands sites and non-payment of a bonus for 2,400 salaried employees planned for this year.
Unite and the GMB said in a joint statement: “We did not want our members in Jaguar Land Rover (JLR) to be faced with the same fate as the thousands of others who have been dismissed in other companies.
“Our members in JLR deserve better - much better. The management agreed with our view that, when this unprecedented recession ends, the retention of a skilled and loyal workforce is an integral part to the ongoing success of this business.
“The choice for our members was clear - further mass redundancies or what is undoubtedly some short-term pain in order to secure the future for our members and their families.
“Only the latter could have been in the best interests of our members. The harsh reality is that some of our members would have faced the prospect of a future of uncertainty and little prospect of quality employment for the foreseeable future.
“Our members should be commended for the decision they have taken today. This was an excellent result for the unions and great show of solidarity from our members for which the unions are very proud.”
JLR chief executive David Smith said: “This is an important step for us as a standalone business. It also confirms our determination as a team to steer Jaguar Land Rover through these extraordinary and challenging times, so that our business is ready to take advantage when the downturn finally ends.
“I am also pleased that the company and trade unions have been able to work together so constructively when dealing with such sensitive issues.”
A spokesman added: “Although the company will continue to offer voluntary redundancy and sabbatical programmes, this agreement also allows the company to confirm there will be no need for compulsory redundancies over the next two years.”
Separately, figures from the Society of Motor Manufacturers and Traders showed Jaguar registered 360 new cars in the UK in February, 108 per cent more than in the same month last year. The rise was mainly due to the popularity of the Castle Bromwich-built XF mid-range saloon.
Comparisons with February 2008 are skewed, however, by the fact that the XF did not enter the market until March.
Land Rover sales fell by 21 per cent in February as the Lode Lane 4x4 specialist continues to retreat from the record volumes seen in recent years.
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