JLR workers to vote on pay freeze and four-day week

Feb 23 2009 by Jon Griffin, Birmingham Post

“Both groups have agreed a pay freeze for 2009 for one year only. Pay negotiations will resume in October 2010.

“We have had some difficult times at Jaguar Land Rover with the disposal by Ford, and going through the sales process, but we have managed to maintain a unity of purpose.”

The proposed deal also includes a mobility clause allowing JLR to transfer workers between factories when deemed necessary and an increase in employee pension contributions.

Provided the two-year agreement is accepted, the deal will allow both unions and management to continue to campaign for a Government loan guarantee of up to £1 billion to free up credit for potential JLR customers.

JLR has already axed 850 agency workers in the run-up to Christmas and called for a total of 600 voluntary redundancies in two separate job loss programmes.

Both Jaguar and Land Rover have also been hit by a series of production cutbacks, with night shifts axed at Lode Lane and workers on the XJ and XK lines at Jaguar on a four-day production week in advance of prolonged Christmas and New Year shutdowns.

A JLR statement said: “Following several constructive meetings between the company and trade unions, agreement has been reached on a number of proposals to reduce costs and avoid the need for compulsory redundancies at Jaguar Land Rover.

“In recognising the urgent need to achieve cost reductions for the business in the light of the credit crunch and the significant drop in sales, the unions will now recommend acceptance of the proposals in a ballot of members at all Jaguar Land Rover facilities, which will be held shortly.”