Jaguar workers vote for pay freeze

Workers at car giant Jaguar Land Rover have voted to accept a shorter working week and a one-year pay freeze to avoid compulsory job cuts, it was announced today.

Members of Unite and the GMB unions accepted the deal - 70% to 30% - after being urged to vote in favour by union officials.

The deal was thrashed out between union leaders and the company, which has cut around 1,800 agency, production and management jobs in recent months because of the downturn in the motor industry.

Workers at the company's sites, including 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.

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 unions and our members were faced with a difficult choice, but no less difficult than the choices we have had to make in recent times. When the business was sold to Tata we faced up to that challenge together and delivered the best possible agreement which safeguarded our plants and our members' jobs. We did not work hard for that to see wholesale redundancies less than 12 months later.

"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.

"We believe that is too high a price to pay for any of our members, let alone the substantial numbers of workers at risk if this agreement had failed. Concessions on pay and benefits that the unions have negotiated hard over many years are not made lightly, but our members acknowledge the stark reality which is, there is little point in having the best terms and conditions of employment if you have no job or no company left to pay them.

"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."

Jaguar Land Rover 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."

Key elements of the package include a pay freeze until 2010, no compulsory redundancies in the non-management workforce in the UK over the next two years, a four day week at the plants, a 40-hour working week for salaried employees with no increase in pay, 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.

Costs involved in the future recruitment of agency staff will be reduced and a non-work related training programme will be suspended.

The company said the measures were expected to achieve savings of around £68 million, which it added would make a significant contribution to its "crucial" cost reduction targets.

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."

The firm employs around 15,000 workers.