JLR's union rejects pay plan, threatens strike

Tata Motors-owned Jaguar Land Rover (JLR) was urged to get back around the negotiating table or face an industrial action ballot today, after members of Britain"s largest union, Unite, overwhelmingly rejected the carmaker"s pay offer and pension changes in a consultative ballot.

At least 96% of JLR's employees across the company's five plants rejected the proposed pay deal stating it fell short of expectations. 12,881 voted to reject the pay offer, with 454 voting to accept and 17 spoilt ballot papers.

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.

Members fear that the bonus, which isn"t consolidated or pensionable, will gradually replace pay rises that attract company pension payments over the coming years.

Unite national officer Roger Maddison said, "The workforce 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 JLR has become a highly profitable world leader with a bulging order book. 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.

"JLR 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 across the company's five sites", Maddison added.