All British factories to stay open as firm confirms deal with unions

Jaguar Land Rover is scrapping plans to close one of its UK plants after securing what it calls "a landmark pay and conditions deal" with the unions.

JLR's owner Tata announced last autumn that it planned to close one of the firm's two factories in the West Midlands. That would have meant the end for either Castle Bromwich or Solihull, with the surviving plant joining Halewood on Merseyside in the JLR UK line-up.

However, the firm has confirmed this morning that it has signed a deal with the unions that will allow it to not only keep all three plants active, but also take extra 2000 staff. The net gain for the region in the short term is said to be between 4000 and 6000 workers.

Read more on the original decision to close one JLR's plants

Workers still need to ratify the deal, but if they do, JLR says the agreement will "lead to the creation of thousands of new jobs in Britain over the next decade as Jaguar Land Rover invests billions of pounds in the UK and significantly increases both the number of models in its range as well as overall global volumes".

The first of the new models will be the Evoque, production of which will take place at Halewood. JLR has already started recruiting an additional 1500 staff for that project. A baby Jaguar saloon, and a new sports car, would increase the need for capacity further.

Autocar sources say that at present, there are no plans for JLR's UK plants to produce Tata vehicles, despite the firm's intention to expand that brand's presence in Europe - including the UK - over the next three years.

Read the full story on the Range Rover Evoque

"Our parent company Tata supported us through the recession and our employees also made sacrifices but now we are seeing a great turnaround for the business," said Jaguar Land Rover CEO Dr Ralf Speth. "Everyone involved - our employees, our customers and our Tata shareholders - will benefit from this agreement. This is truly the beginning of a new era for Jaguar Land Rover."

JLR also confirmed that the deal includes a five per cent pay rise for existing employees next month, followed by a further rise of "at least three per cent" next November, and that there will be "an extension of performance-related pay" across the workforce.

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Comments
18

15 October 2010

I was hoping you would say that it was due to unprecedented demand for the excellent XF and for the stunning new XJ....

15 October 2010

I wonder if this is also partly motivated by the fact that TATA are green lighted so many new models that they now need the capacity?

15 October 2010

It's also reassuring that the recent rumour about wholesale production of JLR products moving to India would be unlikely with so much capacity in UK.

15 October 2010

[quote supermanuel]I was hoping you would say that it was due to unprecedented demand for the excellent XF and for the stunning new XJ....[/quote]

Ditto.

I'm so glad that Jaguar have finally thrown off the old XJ look and moved forward with new, fresh, designs. Well done to Ian Callum; it must have been a challenge convincing those in charge that you were indeed correct!

15 October 2010

Some good news, hoping they go from strength to strength. Tata, how about buying Aston?!!

jer

15 October 2010

I don't get this how can performance pay = a 5% pay rise when they've lost millions or barely broke even in recent times? I won't dwell but my company a household name makes billions and we typically get about 2% on the total salary budget over each of the last 3 years. We made more last year in the UK than JLR have done in their history.

You still have to question if like the England football team JLR are up to taking on the Germans and blowing smoke up their ar*es in the form of generous pay rises is not going to help. Can JLR get product to market quickly ? can they anticipate trends rather than follow ? Is the rip-off UK price for this Evoque is paying for this generous settlement?

15 October 2010

What is wrong with JLR sharing their success with their work force. Shame alot more companies didn't do it. Most of the profit goes into the shareholders and directors with very little going to the workers who actually make the products(we then wonder about poor build quality), WELL DONE JLR.

15 October 2010

[quote jer]I don't get this how can performance pay = a 5% pay rise when they've lost millions or barely broke even in recent times?[/quote]

I'm not sure that is entirely true. Land Rover was earning hundreds of millions for Ford pre the recession. But Jaguar lost money for many many years, but that was down to poorly conceived cars like the X type.

Indeed Land Rover has been very sucessfull and has taken on the Germans...

jer

15 October 2010

[quote TStag] Land Rover was earning hundreds of millions for Ford pre the recession[/quote]

I think there was a couple of years where LR paid back some of the hundreds of millions of investment by Ford and BMW. But the two brands are part of the same enterprise and it's not use focusing on the good bit and ignoring the bad. The consistent factor is that results are in-consistent and the losses are always large and the profits always small.

Don't get me wrong I would like to workers share in the success story, but it's way to soon to intepret this as a success story. Lets see 5 years of solid Audi-esque growth.

15 October 2010

[quote shortbread]Tata, how about buying Aston?!![/quote]

Have to admit I do quite like that idea!

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