Strike threat over as JLR seals new pay deal

Jaguar Land Rover has sealed a pay deal with union leaders after fears that an increasingly bitter dispute could lead to strike action.

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Unions had warned last month that they would ballot for industrial action unless fresh talks led to an improved pay offer.

They said workers at the company's UK sites, including the £500 million new engine factory at the i54, Wolverhampton, were also angry over proposed changes to their final salary pension scheme which includes £240m worth of cuts. Thousands of workers voted to reject the previous offer which was worth 14 per cent over three years.

The new deal sees any pension changes taken off the table. Instead, unions say they will now be recommending staff accept the revised pay offer – a two-year deal with a 4.5 per cent pay increase in the first year, plus a bonus payment of £825 per employee.