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Jaguar Land Rover staff have been offered a guarantee of no compulsory job losses for the next two years - if they agree to a pay freeze and a four-day week.

Union leaders have agreed the proposals with JLR's owner Tata, which cut 450 jobs as recently as January. Staff will vote on the scheme - which would freeze pay for a year - in the next few weeks.

Jaguar Land Rover employs around 15,000 workers in the Midlands and Merseyside. Unions are said to have requested a deal to secure ...Read the full article

Looks like a good agreement and they'd be foolish not to take the deal.  Some security in a time of uncertainty.

Sounds like a good deal for the employees, but how on earth can JLR make such a promise. I'm sure they'd love not to have to make any more job cuts but what if the market gives them no choice?

phenergn:

Sounds like a good deal for the employees, but how on earth can JLR make such a promise. I'm sure they'd love not to have to make any more job cuts but what if the market gives them no choice?

Either the company goes into administration and doesn't have to pay, or Tata picks up the bill for the excess wages and the market recovers or they get redundancies after 2 yrs. I think this gives a good demonstration of the confidence Tata has of JLR surviving, and it sounds a good deal for the workers too.

Besides I get the feeling most temporary workers have gone, so once you start making involuntary redundancies among permanent workers that have been there a while, the difference between redundancy pay and 2 yrs worth of salary is seriously reduced, and they would rather keep workers if they can.

Orangewheels:

2 yrs worth of salary

- most of the workers are hourly paid.

Certainly not ideal but a far better deal than x number of people losing their job. They would be foolish to say no, given the way things are.

 Agreements such as this are common throughout all manufacturing industries at the moment. Despite reports of its demise, we do have manufacturers that make products which sell.

As a salesman, I know the market is tough and the only way out of the recession is to:-

1. Sell and 2. Make what the consumer wants. Hopefully the motor manufacturers will never again fill airfields with surplus production.

This shows that despite the best efforts of the jounalists on BBC News (aka Bankrupt Britain Campaign) and similar news media, there are thousands of manufacturing companies riding out the storm and are looking beyond the recession.

horseandcart:

- most of the workers are hourly paid.

That would make a big difference - promising no more job cuts for the permanent full time workforce is one thing, promising no loss of jobs for temp workers is something else.

Excellent news, with the XF, XK and the forthcoming XJ and XE Jaguar are looking good IMO, a sound range of cars, cutting production and not chasing mass sales ala BMW this could really be the boost they need to succeed, Ford has pumped millions into JLR and now it seems to be paying off, pity they sold them to aid the Yank part of the company, it seems PAG was making a profit in europe but that wasn't good enough for Uncle Sam. If you look at PAG prior to sell off Aston, best range ever, Jag best range ever and getting better, LR, best range ever and starting to go green, Volvo best range ever and going eco with the drive line and just introduced the new V/XC 70 produced the fantastic XC60 with a new S60 in the pipeline. Aston sold off, JLR sold off, Volvo being sold off. Mainsteam Ford making some of the best cars in its history, constantly best sellers in the family market, Mazda now producing cars that are not typically Japanese (ie boring). Overall making profit. Ford USA going bankrupt with a terrible range of vehicles so what do the do sell off the crown jewels. Aston, JLR and Volvo.

Orangewheels:

horseandcart:

- most of the workers are hourly paid.

That would make a big difference - promising no more job cuts for the permanent full time workforce is one thing, promising no loss of jobs for temp workers is something else.

Hourly paid workers can be permanent of course, and if so will have the same rights to redundancy pay and notice as monthly paid "salaried" staff.

Citytiger:

Ford USA going bankrupt with a terrible range of vehicles so what do the do sell off the crown jewels. Aston, JLR and Volvo.

I agree, Ford put a lot of money in to these companies, and also sqaundered many opportunaties for them as well. I would rather see all these companies survive under different owners with a very strong line up, than hitting the wall with Ford. I don't really want ford to go either, as in Europe at least, they do produce some great cars