Facebook Twitter LinkedIn YouTube
East Midlands Chamber News

JCB workers accept 2.6 per cent pay rise

JCB wheeled loaderJCB shopfloor employees have voted to accept a 2.6 per cent pay rise for 2014 as part of a newly-agreed three year wage deal.

The agreement on pay was reached following a vote by GMB members this week and will see around 3,200 shopfloor employees receive the pay rise from January 1, 2014.

The increase is linked to November’s Retail Price Index (RPI). Increases in 2015 and 2016 will also be linked to those years’ respective November RPI figures.

The latest deal comes into force on January 1 following the expiry on 31 December of a 3½ year pay deal agreed in 2010, which was the longest pay deal ever agreed at JCB. The deal affects employees at JCB’s factories in Rocester, Uttoxeter, Cheadle, Rugeley, Wrexham and Foston, Derbyshire.

Chief Executive Officer Designate Graeme Macdonald, who takes over as CEO on 1 January, said: “We are pleased to have reached agreement again on a long-term pay deal for JCB’s UK shopfloor employees. It’s very welcome news and gives us the stability and forward visibility we need to plan ahead as we gear up to face the challenges and opportunities we will face in 2014 and beyond. The agreement also demonstrates a very responsible approach by all concerned.”

The new deal comes on the back of an announcement that JCB is to invest £150m in the next five years to create 2,500 jobs expanding its UK manufacturing operations.

GMB Works Convenor Gordon Richardson said: “A three year pay deal does give us some guarantees for the future. This year’s team of GMB negotiators for the group has achieved an excellent outcome under some very tough bargaining conditions. The deal compares very favourably to those being struck at other companies both regionally and in the UK but our members have worked very hard over the term of the last deal and the outcome of the latest negotiations is a reflection on their efforts.”

JCB later announced that about 5,000 employees at the firm’s 11 plants in Staffordshire, Derbyshire and Wrexham will share a festive payout of £2m, giving them each around £400.

Lord Bamford said: “At the start of this year we anticipated that the business would face a number of economic headwinds and that has certainly been the case with trading being tougher than expected. However, while certain markets have slowed, we are seeing growth in other parts of the world which is very encouraging. I’m delighted that the company is able to award a Christmas bonus in 2013 and I thank everyone for their commitment and hard work this year.”