Socialist Worker

Pension attack pushed back at Jaguar Land Rover

Issue No. 2433

Workers at Jaguar Land Rover (JLR) have overwhelmingly rejected a company offer and made it withdraw changes that worsened its pension scheme.

JLR had said that the deficit in the final salary pension scheme was too large. It proposed to reduce the benefits and contribute more to the contribution scheme. 

The company calculated that this would split the workforce. The majority are still on a final salary scheme but new workers automatically join the contribution scheme. 

JLR made £2.5 billion profit last year.

Workers at Solihull and Castle Bromwich in Birmingham, Halewood in Liverpool, and engineers and  staff at Whitley in Coventry and Gaydon were also concerned about the number of agency staff and the time taken to get to rate for the job.

A massive 12,881 voted against the offer and a mere 454 in favour.

JLR cannot afford a major dispute. It needs all the cars it can get as it expands its export markets. 

So a new offer from the joint manual and staff negotiating team will be balloted on next week.

There is no reference to pension scheme changes at all.

Pay rises by 4.5 percent from 1 November this year and 3.5 percent, or RPI plus 0.5 percent if greater, next November. Time to get to the full rate for the job has also been reduced.


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Article information

News
Tue 9 Dec 2014, 18:39 GMT
Issue No. 2433
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