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Collective bargainingDispute resolutionLatest NewsIndustrial action / strikesInflation

Employers agree inflation-busting pay deals to avoid strikes

by Ashleigh Webber 16 Dec 2022
by Ashleigh Webber 16 Dec 2022 betto rodrigues / Shutterstock.com
betto rodrigues / Shutterstock.com

Significant pay increases have been agreed at Rolls-Royce Motor Cars and logistics company Wincanton in order to avoid strikes.

Around 1,200 employees at Rolls-Royce Motor Cars’ Goodwood plant in West Sussex will receive a pay rise of up to 17.6% – the largest single pay deal in the plant’s history, according to Unite – comprised of a 10% salary increase plus a £2,000 one-off bonus.

The inflation-busting deal will mean that a typical worker will see their annual salary rise by £3,205, not including the bonus.

Employees on higher grades covered by the deal will see their pay rise by 14.8%.

The deal was struck after 98% of Unite members at the plant voted to strike if a pay rise in line with the cost of living was not met.

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Unite general secretary Sharon Graham said: “This is a top notch pay deal for the Rolls-Royce workforce. Rolls-Royce Motor Cars are famous and iconic because of the workers’ craft and expertise. For years the workers had been underpaid and undervalued but that’s changing. The union has won the best pay deal since the site opened.”

The union has also agreed a pay rise for a group of fuel tanker drivers att Wincanton, which will avoid a strike by around 150 employees who work on the firm’s Valero contract.

Workers on tier one contracts will see their pay increase by 20.7%, while those on tier two contracts will receive a 37.1% pay rise. The deal was designed to reduce the differential between the two groups of workers, Unite said.

Unite national officer Tony Devlin said: “This is a significant pay increase in line with similar recent uplifts for other tanker drivers nationally. It further demonstrates that Unite’s strategy in the downstream oil distribution sector is delivering while the union continues to ensure that all tanker drivers receive a fair pay increase.”

A Wincanton spokesperson said: “We are pleased to have reached a positive outcome that satisfies all parties.”

Rolls-Royce Motor Cars, which is owned by BMW and is separate to Rolls-Royce plc, has been contacted for comment.

Several organisations have awarded large pay increases to avert the threat of industrial action. BT Group will award 85% of its UK-based employees a pay rise of at least £1,500 from 1 January 2023, while in October criminal barristers in England and Wales accepted a government offer of a 15% pay rise.

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The Office for National Statistics revealed that employers lost 417,000 working days to industrial action in October – the highest level in a decade.

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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